Advise on a four-plex

7 Replies

I am looking at a four-plex that is under foreclosure.   I recently walked the property and noticed the following:

A/C units and handlers missing (all units)

Hot Water Heaters missing (all units)

Minor plumbing work in kitchen (1 unit)

Possible Mold (2 units)

I have not see the roof but from looking at the ceiling does not look like any leaks. Asking price 199,000 and was thinking of Offering 150,000. I plan on using my military VA loan no money down and was going to see if I could qualify for 203K. I was going to live in one unit and rent the other three.

Opinions or suggestions??

What is your thoughts? Does anyone

@Robert Ehrlich using VA I don't think you can do fix ups these days. AKA it has to be move in ready. Without hot water heaters thinking VA is not an option, but check with a banker.
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Va and FHA 203K are 2 different loan programs. They cannot be combined.


VA is 100% financing. You have to be a veteran and they require the home to be in move-in condition.

From
http://www.trulia.com/voices/Financing/Is_there_an...

@Robert Ehrlich welcome to BP. I was shopping for a 4plex with my VA. For different reasons I am sposed to close on a SFH Jan 23rd. Hard to find duplex/triplex that is a decent price that also is move in ready in my area.

couple decent threads on locating duplexes on here.  GL

@Kirk R. Thank you for your input. South Florida is probably even worse then VA. This is why I decided to ask B.P. For advise.

Thats a minor set back you could probably get something worked out where you get a water heater hooked up in one unit. One thing ive learned is to not to let minor things that can be easily remedied stop you from investing and reaching your goals. Expecially if you think the property is worth the investment.

@Robert Ehrlich  I agree with above not sure on the va but maybe hard money and a va as the exit stragity not sure the exact regulation.  But when dealing with most banks they are a person behind a desk and have no clue go find the most expensive contractors in the area get them to give you quotes then use those as a negation tool with your offer.  Not sure how big the unit are but 4 systems is going to cost you a min of 14-15k.  Also would have to understand rent rate property value erc to determine the deal. Good luck

Just an update, I might have someone who is willing to provide me a personal loan. So I spoke to someone at my church who has rentals and he suggested that I offer 60K less than asking. Between the two I believe I could go with an FHA and re-work the loan. This deal is in God's hands.

Have you talked to a realtor about whether or not that would be accepted for a VA loan. We bought a real beater with our first va loan! Make sure you evaluate foreclosure and watch them. They are very high in my area.

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