My wife and I set out to buy and owner-occupy a multifamily property that would allow us to live in one unit and have the rents from the other units cover our mortgage and costs completely. It took as a few years (the multifamily market in Utah County is priced high compared to rents) but we finally were able to close on our first 4plex in May 2013. We've been living in one of the units for free ever since! Now on to the next deal :)
Congratulations. Keep it up.
Hi Dave, that is so exciting and inspiring. Often times folks overlook the owner occupy multi family investment opportunity as a great way to build wealth and conquer that first property. We all look forward to hearing about the next deals to come for you!
Smart!!! Everyone I usually run into that is looking to do the same thing only considers side by side duplexes...which are way too expensive if you ask me. I tell everyone to look into a 4 plex...that's what I would do if I ever started over.
@Dave Barnes I can't think of a better way to start investing. Great move!
Now, how much would you charge me to come and explain all of the benefits to my children?
Welcome to PB-
Hi there @Dave Barnes congratulations on your fourplex. How long ago did you buy it and how much did you buy it for if you don't mind me asking. How would you compare price difference between a fourplex in Lehi vs Spanish Fork vs Payson.
@Jack Aduwo we bought it in May 2013 for $373k. I've been watching the MLS for Fourplexes in Utah County for years and I don't think I've ever seen a Fourplex for sale in Lehi - not as common there. There are several listed right now in Spanish Fork, none in Payson. Often times price will depend on size (2 vs. 3 bedroom units), condition, age, and location but honestly it's all over the board. I've never seen a Fourplex with 2 bedroom units listed in Utah County for less than $320k and I've seen the 3 bedroom unit fourplexes as high as $540k. Ours has 3 bedroom units and is surrounded by SFRs so we've been able to get higher Rents than the smaller unit Fourplexes surrounded by other Fourplexes. Hope that helps!
Congratulations Dave! I wish my wife and I had started this game when we were younger. You'll be so much farther ahead.
Yes, properties are expensive in Utah compared to many other regions of the country. I read their stories and think "Wow, I wish I could buy something that cheap." I was listening to a BP podcast a month ago and a young female investor in Chicago stated she bought a four-plex for something like $90,000 and then put another $40,000 into it. Then rented each unit for around $800. I can't even imagine . . .!
Thanks @Dave Barnes for that feedback. Indeed those prices seems to high for fourplex. I am trying to switch from SFR to MFH and its been very hard to find a reasonable deal on multi familties
@DeVon Zumbrennen yes the multis in chicago seems very enticing based on their rates but there is a big IF when it comes to chicago. Also i personally would try getting something in my market as much as possible before i could consider the flyaway distance markets or unless it is a place i have lived in the past and knows it very well
@Jack Aduwo: Jack, I agree investing locally is much better/safer, especially for a mom-n-pop operations. We can walk or ride our bikes to all of our properties here in Orem. It makes for easy drive-by observing what's going on with the tenants. (Rich dad poor dad also recommends this practice.) There are too many horror stories of investors buying in distant cities and the property manager not doing his job.
Wow! Its great to hear that you found a good multi deal in Utah Valley. I've been looking for some time. Congrats!
I work with owner-occupants looking to do the same thing in Chicago, it's such a great investment, well done! I did that with my Duplex for 5 years, lived for free!
Congratulations on your 4plex. Thanks for sharing with us. It gives us new investors an example of someone new getting done. Thumbs up to you and your wife.
Enjoy as you prosper.....
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