I need some help figuring out the best strategy financially from your experience on how I should proceede with my second property.
Ok here’s the situation…
I just purchased my first investment property 2 months ago after saving for 2 years out of college.
It’s a 3 bedroom Apt. in Boston, purchased at 240K /w 20% down (it needed alot of work so I got cheap). -I put about 5K of inprovements into it and did a lot of the work myself and it looks awesome now. It rents for 2400/month but I’m currently living there with roomates so I’m at break even, living for free and saving up more cash.
My ideal situation would be to purchase another 3 bed apartment to fix up again or a 3 family right outside the city where I can keep two floors rented out while I improve the third. I’d like to do this in April, May, or June of 2011 for somewhere between 280K-320K. By then my financial situation will look like this: 49K of equity in current Apt, 20K in cash savings and another 20K in my 401K.
Is this reasonable with my current situation. Also if it helps I will be moving out of the apartment I currently live in and moving to the new place so that I can fix it up.
So I have a few questions:
1 Will my finances allow me to get something for 280K-320K and whats the best way to purchase the property given my savings mentioned above?
2. Is my strategy decent, or should I come up with something different?
3. Will living there help with financing?
Any help would be greatly appreciated. Also I’m currently 25, work full time and am not married and have no kids (that I know of :rolleyes)