I saw someone on tik tok day instead of getting an apartment, save up and get a loan pay the 3.5% off and then live in the duplex and charge someone else for the other and basically live for free
This is basically what I'm doing. Lived at home with parents where I didn't have to pay rent and saved up enough for a 10% down-payment while building my credit. Planning on putting my offer in on a duplex tomorrow. The only bummer is that I'll have to move away from my job and where I currently live since duplexes just don't exist over here...but most of my family lives in the area of the duplex so it'll be okay. I ran the numbers and the income from 1 unit of the duplex should cover the mortgage...but probably not the full monthly payment including tax, insurance and what not which comes out to something like $200 not covered by tenants... still a great deal!
Chandler just as a recommendation, can you do a video of your favorite books? whether they are about Real estate or not, I always see´em in the shelves at the background of your videos. I'm interested and I'm sure many others are, thanks for the amazing content
What would your advice be for someone buying a duplex in a major city like LA or some other cities where its super expensive? Most duplexes in my are go for 350k< and rents around 1500 so i haven't found deals where it seems to cash flow well enough
I run the numbers on a couple of my girlfriends mother’s apartments and her numbers range from 50 to 500%!!! We live in Michigan and u can buy triplexs, quads, and duplex’s for under $80k all day in mint condition and easily rent them out for 600-900
Really looking forward to those courses bro🤙🏼 You are definitely one of the most elaborate and descriptive teachers out there, you're doing lots of good for many people.
You have some great content man!!! I appreciate the insight! Only in 2020 is it possible for an average guy to learn how to invest in real estate from his own home. Wealth is more possible today than ever!
Same, didn't notice it went up already. Just noticed after your comment. Was curious beforehand if it would be getting added content as time goes by, as we all know... There is always new changes on better ways to do things as things change.
If you're trying to grow your channel, take a look at graham stephan, and don't start the video with an ad for your course. Get people to trust and like you first, or it leaves a bit of a bad taste in the mouth.
If you save your money, pick up a job, and continue to learn about investing on real estate, you're gonna set yourself up for building wealth. Never too early bro! Wish I got interested in this stuff earlier
Depending on local minimum working age, you can work for somebody to gain experience. Three years experience and some down payment money, play around with the compound interest formula and you'll be glad you are watching this.
I think the COC return should also weigh in on what your expectations for the property is. I'm fine with a lower COC return in the 10% ballpark because I have a full time job plus I see the properties as future gifts to my children. So the properties pay for themselves while giving me some cash to play with and leave a legacy gift in the end. Hopefully lol
Your videos are awesome man. I’m a beginner with 3 SFH. A lot of the strategies I implemented I learned from your channel. Thank you again for these. Looking forward to the course. Do you touch on any Out of State strategies?
Hey Chandler, are there heavy repercussions for getting a loan to live in the duplex (FHA) but then don't live in it to take advantage of the low rate and cash flow? I'm a real estate noob and have been wondering this. Thanks!
If you get an owner occupied loan and don’t occupy it, that would be mortgage fraud, so yes heavy repercussions. Most times you have to live in the property 6-12 months before moving out of it
@@tcmspirit Can you still stay in your own house and occupy one of the rooms in your FHA house? Do you have to change your address? If there for just 6 months?
Great videos and solid advice Chandler. But the sample numbers in these videos always look like numbers from the 1980's to someone like me in California. I have a lot of fun talking cost of living as I travel across the US on business. It never fails to get people riled up one way or another.
I always gravitate towards using numbers like $100,000 because it usually makes the math easier to walk people through. I completely understand though - markets like California aren’t comparable at all. I’ll start incorporating bigger numbers in the future!
I still don’t understand why you want to use a 25% down payment on the calculator. Wouldn’t you want to use the low and real down payment (maybe 5%) , so that you are not looking at artificially high monthly cash flow?
Chandler great videos bro. I live in Cali i wish the prices of homes were that low but its hard to find 1. So the cours is not 99 any more😞 thanks keep making this great videos.
How much time you can take FHA Loan? Like after 1st one, if you plan to shift your second one, can you again take 3.5% FHA Loan for your 2nd property and can you continue it again every year?
Yes! I’ll do a video like this. I also have over an hour of explanation in my course on using the app and spreadsheet if you want to get it before the price jumps at the end of the week
Hey Chandler, quick question, The way you frame this video seems like we should figure out what our criteria is, and generally the realtor does the work in terms of finding the deal. Is this so? If so then that would make the search project so much easier.
Absolutely get a realtor involved. They work for free entirely until you close on the property, so definitely utilize them! Give them your criteria ahead of time so that they will only bring you deals that you’re comfortable purchasing
You should do a deal break down video of washington state. All these investment videos I see are always people talking about these massive returns they have gotten on a sub 100k property. Lets use real numbers!
what do you suggest for someone with a family of four that doesn't want to move out of their home and into a duplex? I guess the only thing will be to save up enough money to put a 20% downpayment on a cheaper rental property with a conventional loan? If I understand correctly you have to live in the home to use the FHA low percentage of 3.5
On your calculator, If I cash out refi one house to downpayment on another, you say still run it with a 25 percent downpayment? Should I then do a 25 percent downpayment but add that amount onto the purchase price in the calculator so it correctly shows the monthly mortgage payment including extra monthly mortgage payment that I now have to pay on the other house?
Call me slow but... If the lower the down payment I put down gives me greater COC return, I thought that was a good thing? If I’m putting down a 3.5% downpayment, wouldn’t it be more accurate if I just type in the 3.5% rather than 25%? Why wouldn’t I want to buy something at only 15% COC return if I put 3.5% down?
no I think is a lower down payment as 3.5% you'll get a higher cash on cash return because is not a big amount of money and you'll get it pay faster than a 25% down payment. (I tried the app with only 3.5% on my situation was 66%, and then I went with the 25% and was 14.7%)
If feel like if youre aiming for an investment 66% growth on your money is better than 14.7% You could save a little more and put that 25% on your next property. 3.5% is owner occupied so you can't pop those out every day. 25% is what you'll realistically be putting down. Imo
Chandler question, what if you want to invest the same way you do stocks. For example by and Hold. Does the number matter as much then? What if you had a 4 plex and just held it for 25 or 30 years and over that time period it paid you 300,000 to 500,000 dollars during its life time. Does it matter as much about buying a good deal if that if your stratgy? I just wondering because I have always wanted to invest in build a samll army of 4 plexes.
I think so! I only put 3% down on my first deal, had to pay mortgage insurance but it paid off down the road when I sold and walked away with $120k in profit
Question if duplex are hard to find because most people want them and a low barrier of entry, should I shoot for a 4 plex instead. Because maybe less people will be able to afford them and the barrier of entry is higher?
It is but it’s a very small amount of cash flow. 15% of $3500 is only 525 bucks. So 15% cash on cash return is slim and not much cashflow. You want more cash flow than that so you have some wiggle room
@@AnthonyDLinares no I think is a lower down payment as 3.5% you'll get a higher cash on cash return because is not a big amount of money and you'll get it pay faster than a 25% down payment.
Anthony Linares when you put a lot less for the down payment, you will cash flow less money, because your mortgage payment is higher as well you will pay PMI if under 20% down payment
Anyone with a duplex, how time consuming has it been? How many hours per month do you invest thinking or working on a property? How much per month does it make?
After 30 years we are finally selling our duplex in South St Paul…luckily my husband and his family are handy and could fix most any problem. We would get calls on holidays that their oven wasn’t working or drain clogged. Be prepared for the unexpected. Also, we’ve only had 1 renter that we had to evict, which was a horrible experience-do your background checks!!
I noticed they're widely available now at least in mh area in Sacramento California. It used to. E hard to find but now.they're allover the place. Maybe it's because a lot of tenants cant pay rent and the landlords are just selling them.
Love this channel and love this app. However with the way housing is going in canada using your calculator looks like getting a 20% cash on cash return here is nye impossible, or maybe I'm just doing it wrong with the calculator? I just purchased a duplex at the lowest I can in decent condition pretty much ready for renters in a prime location where finding quality renters should be no problem. Inspection is next week. When I try running numbers on my purchase using the calculator everything looks like a lose 🤷🏾♂️ situation or not nearly as great as your numbers/ criteria. Property tax is crazy high here, house prices are higher compared to states and most properties are gonna require some maintenance. Factoring these 3 things using the calculator. I also Tried using your numbers and actual figures here where I live, and nothing seems to work out. Everything comes out with numbers in brackets (which I assume means I'm losing money) I can't seem to get it where I'm getting great cash on cash return! 20% or 25% down for a single income even using first home buy plan, is alot of money down still. Money that even with a first time home buyer plan can't afford. Im personally looking to put 10% down Is there any hope? can I still win?
Me and my wife are looking to start purchasing investment properties we are looking to start house hacking, 🏠 so far I'm digging the content, just wish you had a more.detailed.break down, you could make an hour long video and I would watch and take notes.
Confused. Am I supposed to actually put 25% down payment down or am I supposed to just "plug in those numbers."? I ask because I may want to do owner occupied deal house hack. I THINK that's just 31/2 % down. Right? Need more clarification please.
Make sure the numbers work with 25% down. If they work with 25% down they will definitely work with 3 1/2% down but to get a 15% cash on cash return you want to have that show up with 25% down. Then at 3 1/2% down you will be well above that but if you’re dead on 15% cash on cash return with only 3 1/2% down then the deal is not good enough
I am looking at a duplex property at 165k, my realtor told me Ill need around 10-13k towards down and closing? One section is being rented out by a section 8 tenant paying 680 currently and in May of 700. What are your thoughts on something like this... I am interested in maybe living in it the first year.
Bro this is awesome advice but like 15% C on C return with a 25% down your way is not really possible in phoenix AZ and the housing market here isnt even that expensive. What are your thoughts?
Does that 5k coc return include the 12 and 6% plus 6% vacancies that you put aside or is that 5k the total and then you need to put your %s aside after?
I found few properties but the agents are not replying with the costs of the expenses. I cannot see the cash on cash return if the numbers are incomplete. How do you guys look for the numbers.
Hi Chandler, My name is Roman and I've been watching your videos for some time now, but I have a couple of questions maybe you can help me with? How do I find the value of a home with an accurate number? I'm actually in the process of buying a single family home and I'm indecisive because I'm scared that I don't know much or nothing and all. If you could kindly guide me to some websites that can help, I highly would appreciate it. Thanks!! - Roman
What out there his numbers are a fantasy. Don’t get hyped about this example the chance to find something like this good with NO closing costs and ready for rent at that price is very slim in the single digits no matter where you live
i found a property ready for rent for 120k in an area of 140k houses,in my country there is not too much duplexes rather all appartments anyway i got 21% cash on cash return 4% cap rate and a total return on invstment of 5.22% all of this while putting 12k downpayment but the mortgage is around 500 and in the area the rent is 300 to 400 max what should i do
Just my two cents, but I’d either try to raise rents, sell it, or move into it. Negative cash flow rentals are never ideal. You should be able to rent it out per bedroom to maximize cash flow as well.
Hi Chandler! Do you think it is a good idea to buy investments duplex houses in Buffalo, New York? I live in Brooklyn and Buffalo is 6-7 hours away from Brooklyn.
@@Joseph_Eissa if you live in the states...you must sign papers to which you agree to live in the property for an entire year. After that you can move...before then, asking for problems....they can rewrite the entire loan as commercial. Disclaimer: this is my opinion from my personal experience....nothing stated is considered legal services or advice. Although it is true....and freely given)
At what point can you stop working a day job to focus on rental investments? I feel like I've wanted to do this forever now but my job takes up so much of my time.
You only paid that much for insurance and property taxes? I been looking for a duplex and fourplex for my first investment and it’s almost impossible to find more than 10% cash in cash return. I live in Dallas.
