the first time - Posted by andrea

Real Estate Investing
1

Posted by Tim on July 06, 2006 at 23:01:49:

Andrea,

I just got back from the Saginaw/Bay City area visiting friends there last week, and they said that the market is just plain flat. Nothing is selling right now. This should give you a great opportunity to make a very lowball offer on whatever you buy. Are you near Bay City?

I live in Maine, but your post peaked my interest because you mentioned Eastern MI University. (Sorry if that is nowhere near Bay City, I don’t know Michigan that well) You shouldn’t keep renting, you’ll never gain equity. But buying a triplex is a great way to get started. You will actually pay less than your current rent. But make sure you do low offers, I’m sure sellers are glad to have ANY offers. Don’t buy for list price!! Then after you settle into your triplex and get it rented, then go after the fixer upper to get rehab experience. Living in a rehab can be a marriage testing experience. But just fixing a rehab as a project, where you can leave it and go “home” every day is much better. My wife doesn’t like having a table saw in her kitchen.

Good luck!

2

the first time - Posted by andrea

Posted by andrea on July 04, 2006 at 20:12:06:

My husband and I are looking to buy our first home & create an investment opportunity. We don’t have a lot saved. (maybe $5000). I have been approved for $250K. I am looking at a triplex (great condition) near Eastern Michigan University. There is always a demand. The home is listed for $154K. My question is: should my husband and I stay renting at $600/mo., buy a cheap fixer-upper (which I know we would have to keep for at least a year) or take the plung on a triplex? What is the smart thing to do?