They don’t have to be landlords. They can hire a property management company and tell them not to let the other tenants know but still stay living in the multi unit for a year.
Looooove that, if it has a garage you can convert the garage into a studio move in there. Then rent out the 2 units for more income. Its a temporary sacrifice but you are on the right track for sure!
Thank You for the info! I hate that I have to scroll so far down the list to find people of color on RU-vid, but I do so intentionally because I love supporting small businesses in this way! I will subscribe so your videos will pop up top of the list ;) and I'm looking forward to following your journey of entrepreneurship and prosperity, keep it up 👏🏾👏🏾👏🏾
That’s is so sweet, thank you so much for supporting my channel. I started this channel Because I could not find enough people that looked like me to learn from when I had so many questions. 🙏🏾
@@MelaninMommyMillionaire this is why I hope and pray your keep it up! We need more people of color on RU-vid and various Social Media platforms. I'm off and on RU-vid and Social Media, but I'm committed to sticking with it in the long run.
Same here, we got to dig to find investors who look like us, but glad we arrived :) I'm here because my 31 year old daughter is looking to purchase her first home. I am encouraging her to buy multifamily. We're not surrounded with successful investors who look like us, so I feel if she would hear this information from another Young woman of Color who looks more like her MAYBE she will listen to my advice. Thank you Mariam Dao for your labor of love.
@@michaelsherron7815 Hi Michael. Out of curiosity, why do black people always look for other black people who do great things? Why do they have to see someone who looks like them to feel comfortable to make a move in an industry? I’m genuinely curious.
Hi! Thank you for this video! Happy that YT recommended your channel to me. I just did this and don’t regret it one bit… also went the FHA route requiring me to be an owner occupant as well. What I did differently however was acquire my family’s first property by myself. My income, my name on the deed alone. Initially, my husband was not happy about this. Even though he was there for every step of the process, he assumed it was some undercover ploy to divorce him 🤣 Noooo! Buying properties separately helps you get more doors faster. I used FHA now I’m positioning my husband to get our next multi family property by the end of this year or early next year. Now I am the owner occupant and my multi family and he will be the owner occupant at his multi family property and we just spend the night at each other’s property sometimes 😂 After our time is up, boom… we join together on our “forever home” (which will still come with some detached component to get rental income). This is also something I think ppl don’t understand or realize. It’s best to do it before you get married if you can that way your spouse doesn’t think anything suspicious is going lol but if your spouse understands, all the better… each person can get up to 10 loans in their name and you can start out via FHA paying 3.5-5% down per person and end up with more doors… Keep putting out excellent content! 🙏🏾❤️
Congratulations to you. I did the same thing with both my husband for our primary home and my sister on this deal. But my husband is on the deed which means he shares ownership in the home but has no mortgage obligations so it does not report to hid credit. This is something you can do on your husbands deal, you can go on the deed but he alone will have the mortgage and it will not hurt your debt to income ratio. But i agree this method allows you to scale up so much faster with your spouse. YOU KNOW YOUR STUFF!
At least you were upfront with saying that in order to qualify for FHA with only 3% DP, the owner must live onsite for the 1st 12 months. I've seen many multifamily homes buying videos that don't even mention that. Given that, most multifamily homes are located in inner cities and lower income areas and some people are not comfortable with living even temporarily in those areas. If a primary residence cannot be established, then the home will be considered an invest requiring at least 20% DP and higher interest rates. Also, multifamily homes generally are listed at higher prices than single family homes. Not to mention that some multifamily homes may require upgrades which require time and money. There are many people making large profits in multifamily homes, but they have a large amount of liquid assets. They generally purchase the multifamily homes in diverse geographical areas where they don't need to live onsite. Of course, these people are more than comfortable with putting 20% for a DP for investment properties.
I live in Bergen county and there are beautiful high end multi families near me. It just depends on your budget and affordability at the end of the day.
@@crod6431 If i can go back in time I would definitely do it. Its a small sacrifice for a bigger return. If I would of moved in a multifamily and had a tenant 6 years ago when i first moved to Jersey and move into a second multifamily 12 months later. By year 3 when im moving into my dream home with my family I would have my 9 to 5 income, husbands income along with monthly rent checks from 4 tenants. It all depends on how bad you want it. I wish someone told me this when i was buying my first house. Thats why i made this video, but its not for everyone.
Thank you I just got approved for an FHA loan and want a multifamily I'm a little nervous about getting one alone but after watching this video you helped me so much
Thank you for this video! I’m 25 and always traveling for work so definitely considering a multi family. It’s just scary as a first time buyer don’t even know where to start. I know this is the move i should make!
It sure is, the earlier the better. I just hot my sister to buy her first duplex and she just turned 23. The earlier you began the sooner you will achieve financial freedom. Go for it!
Thank you for watching. I wish i could go back in time and make a multifamily our first purchase, the numbers just make much more sense. Its a great family investment.
In that case if you have good credit leverage your credit and use a hard money lender but that also requires a bigger down payment. Either get a partner and go half and half with the down payment or start small with a distressed single family, rehab, rent then refinance or sell and use those profits as the down payment for the multifamily. Find real estate groups near you and start networking you could bring something else to the table if you find someone with the funds but its always good to have some skin in the game. Liquidate assets if you have to. Good Luck
You are absolutely brilliant. Thank you for sharing your wisdom with us all. As a fellow woman entrepreneur, and single mom with good credit…you inspire, giving me the courage to step out and do it!!!!
Hi Mariam! I’m so happy your video popped up. My 1st home in 2008 was a condo. I’ve always been interested in duplexes and wish I would have done this. I plan to buy this year and I’m going for it! 🙌🏾❤ #NewSubbie #TFS
4:44 maybe I’m misunderstanding you but for Duplex’s, the self sufficiency test doesn’t apply. Anything bigger than a duplex it does. Appreciate the video
Im wit u Mariam.. I did that.. And ur absolutely right.. This is what I be preaching to my family and friends.. We have to link..im tryna scale but ive hit some speed bumps because of my lack of contacts out here in Jersey..I bought a 3 family in the pandemic also.. Hopefully we can talk and build.. Thx..
Once you get into real estate you get so excited that’s it’s all I ever talk about to everyone to anyone who will listen. I have all my younger siblings and nephews read, rich dad poor dad to get their mindset in the right place at a young age. Same here, most of the contacts I have now I got from my realtor she is definitely a big help and have a lot of contacts with whatever I need. Do you have a realtor that helped you buy your 3 plex. Congrats on that by the way!
Hi thank you for the information. My husband and I are interested in buying our first multi family. We are now on the path of learning how to go about it
I wish I had seen this video 2 years ago. Cuzzz I was approved for $900k and instead of buying a multi family home with that money I built a townhome for $516k instead. And now I’m mad cuz after the house was completed rates went from 3% to 5.75%. So Yupp listen to her
I love this video, I loved how you explained this, and appreciate all the useful realistic examples and information, I will show this to my wife, thank you 🙏🏾 💪🏾 It is very helpful to see folks like yourself doing great things and building generational wealth 💪🏾
@@MelaninMommyMillionaire so I had to put 20 percent down… how long typically should I wait to get a second one also what are your thoughts on refinancing?
It’s really up to you, on how fast you want to scale up. Once you have a signed lease refinancing would be easier for the lenders to see how much your properties will bring in.
I love all of the information you shared, and how responsive you are in the comments section! Thank you for sharing your wealth of knowledge, and I subscribed to receive more gems like this! Wishing you the best in all of your future endeavors!!!
I bought my first house last year, single family home. I rent a room to a family member, its not a lot but feels good to collect money every month... I am learning a lot.. I work in I.T but in my free time, I go on youtube and learn about construction, plumbing, etc... I want to move to the next level and get that duplex or triplex... How did you go from owning single fams to multi fam? Whats the process? I am exited to learn more from you.
That is awesome! It just about taking that next step. Having w2 income always helps. You should reach out to a lender and see how much buying power you have. Basically they will provide you with a pre approval letter and tell you how much home you can afford with your current IT and rental income and if you buy a multifamily they will also include the estimated rental income you will get with the new property and you may be surprised with how much home you can afford. Good Luck with everything!
I really appreciate the info your sharing I’m a hairstylist who just relocated back to my home town New Jersey and I really want to start my real estate investment journey!!! I would love to connect with you on how I can get started at in New Jersey. I would love to have you mentor me through my first deal. Would love to talk about how that would work!
Thank you so much babe I’m alil late. I’m 35 trying to buy my first one an I’m in Massachusetts the houses are 500k- 1M and up…. Like why are they doing this to us smh
I wish I saw this videos 2 years ago. I bought a single and now I want to invest and buy a multi. Can you make a video on the route you did seeings how you bought a single first. What should I do next? Would I lose money?
What about property taxes? I’ve been looking into this and notice a lot of these videos are targeted to people who don’t have a lot of disposable income to do this with but the loans fha or other loans help with that but what about once you get the property and the taxes double bc it’s a multi family home ?
With a FHA loan the property taxes is tied into your mortgage pmt. Your mortgage pmt consist of: principal, interest, insurance, property taxes and PMI (property mortgage insurance). PMI is only paid to the bank if your down payment is less than 20%. We bought our 1st home in 2017 and in these 5 years our property taxes has increased about $200. So although it increases annually as you can see it is a minimal amount. The increased amount depends on the town and home improvements you have made. You have an idea of what your property taxes are before you close on the house and this is just part of the due diligence you do before purchasing a home. Ive never seen property taxes double, that is abnormal. And you can always dispute with the town and they will send an inspector to the home and give you the reasons why your taxes have increased. I hope this was helpful.
I live in a different state from where I want to buy. I wouldn’t be able to live in it. ( unless there is a way around it). I am also a first time home buyer. Can you give me any advice. Only interested in multi family
Hey I just found you and I'm enjoying your videos. I do have a question now that you are doing Airbnb. Do you have to get a separate LLC to run the Airbnb business in Multi Family Apartment home? And Also get the permits to run that operation? Thanks
Thank you so much for tuning in. I’m using the same LLC and you have to get an inspection with the city before renting your property out. One would be a certificate of occupancy inspection and then you also apply for a rental application. They granted me both after doing the inspection. There is also a fee for both.
Hello, thank you for watching. I never became a landlord as i decided to list my property on air bnb so I opted for. Short term rental instead. Read the book by Brandon Turner on managing rental properties. That gave me a lot of good tips.
@@MelaninMommyMillionaire thanks for your reply. should I use the rule of not buying a house more than 25% take home pay monthly as a mortgage cost. The Dave Ramsey rule?
I did not join a course but ever since i bought my primary residence in 2017 i have spent the past 5 years reading real estate books, watching interviews and podcast of real estate gurus. I joined face book groups and bigger pockets podcast and asked a lot of questions along the way. Thank you so much for watching.
Thanks for the info, I'm trying to learn as much as I can and network but this is my first time in this niche I have a million questions and ideas, first is if when u go to buy a multifamily if it's considered a business would it be better to have an llc to purchase the property for the benefits or naw?
If you are buying the multifamily as a first time home buyer and want to take advantage of the 3.5% down it has to be your primary residence for at least 1 year so you cant buy it with a llc.
I recently dropped a video titled, "I submitted an offer on this duplex - How I analyze my dealsl" on my channel where I show you how.I analyze my deals.
Do you have a video that takes us step by step on how much money you put down ? And how did you approach the deals and what documents were needed? Or do you have a webinar? TIA
Thank you! I do have a question what problems did you have to navigate buying a multi when already have a single family well back owned still ? Trying to figure out my play
You can do a cash out refinance or HELOC on your current single family and use the funds to invest in the multifamily. I used a DSCR loan to BRRRR out of my first investment and into my second using the cash from the BRRRR. The lender will use the potential rental income and add that to your income. As you add more properties to your portfolio the debt to income ratio will start to be an issue. if you are married only one name should go on the loan if their income is enough, this will help with the debt to income ratio. Both spouses can still go on the deed although only one is on the loan. Hope this was helpful!
If you have a 401 k you can borrow money from that and use it as a down payment on your first home. They are perks as a first time homebuyer. Speak to different banks and credit unions.
I bought my 1st place through the naca program... less than $10k to get in my home in NJ. But I wish it was multifamily too... question... I'm trying to get a rental property, are you apart of any groups or anything that helped you?
I follow this man on instagram that is very resourceful when it comes to multifamily investing. Jullien Gordon. Follow him! I believe he has classes you can join.
@@MelaninMommyMillionaireI been looking at a two unit building that's been sitting vacant for a while,use to be rented out to low income families.Now I see it needs a roof and a good rehab inside and out,can I qualified for a F.H.A and a rehab loan combined together.
@@MelaninMommyMillionaire if you were me, would you sell your condo (FHA) to buy a multi property to live in. Or keep it and use savings (while out 75% of savings) to get a cheaper Multifamily (25% down) out of state and fully rented out. Don't know which route to go, in Tri state as well (NY)
@@007Nameless that is what most real estate gurus I follow did in the beginning of their career. Start small, build some equity, sale and use the proceeds to get into a bigger deal.Selling your condo and buying a Multifamily would be a good start and you can rent the second unit and in 12 months repeat the process and each time you will be approved for more because they will use the income from Your units. Just keep in mind right now it is a sellers market so selling will be easy but finding a Multifamily and actually getting your offer accepted will be challenging in this market. You have to place an offer at asking or above just to compete.
@@MelaninMommyMillionaire this is good info. I think I will sell and apply for another FHA for Multifamily. Tri state is difficult but need something easy enough to commute to NYC for now.
