1st deal in 7 years

14 Replies

As some of you know , my wife an I have been looking for a fourplex or triplex situation for about 5 months now. Compounding our challenges to getting an offer accepted is the fact that we are going to be owner occupied and going FHA. Multiplexes have been ridiculously cheap in the fresno area , so wholesalers and all cash buyers have been swooping up everything as soon as they hit the market. We have made over 25 offers and in some cases offered 30K more than the asking price and were still outbid. We have concessions asking for closing costs and require seller to repair anything FHA requires - so I can understand that many offers probably looked more attractive than ours, especially if they are cash offers - however , we agreed in the beginning what we were willing to ask for and where we would bend.

After 5 months of near hits, we finally found the perfect place. A triplex of 2b/ 1b units single story with 1 car garage and laundry room. All newer fixtures and tile floors and counters in all units -
its located on a quiet cul de sac and has plenty of parking and no neighbors to either side.

The owner has had it for long time and did want to sell to a flipper or manager , but wanted an owner occupied buyer so he was even though we offered 14k less than his asking , he came back at 205k and is paying towards closing , and all FHA required repairs.

It's a really amazing payoff after all these months of searching. We are really excited about getting back into property management. I am considering looking for more property as soon as the dust settles and see if maybe I can wholesale it - try to make enough for a down on another multiplex - perhaps a duplex this time since the down will have to be 20% as it would not be owner occupied.

In any case, I wanted to share this experience with everybody and remind anyone who has not been getting offers accepted that if you stick to it and keep going after properties - it's a numbers game and persistence pays off. personally , as frustrated as I have been getting, I still feel lucky that it only took us 5 months - my sister took 6 months just to get an SFR offer accepted and I have seen a lot of other horror stories on the site.

The mortgage will be $1162 and the it is fully rented right now at $750- 775 a month. We couldn't be more pleased. At this point the only thing ( i think) that could mess things up is if the appraisal doesn't come in high enough - fingers crossed. If all goes well we should be closing by mid november. Just in case, we are still looking out for other opportunities. Never give up!!

Congratulations! I'm happy for you :). You're right - it's a numbers game and can be very frustrating at times. I need to remind myself constantly of that fact too.

Thanks Anthony - and welcome to BP. There are so many great success stories at this site - I have been getting an unofficial education in real estate. Hope to see you around the site.

thanks Charles, I was just getting ready to start a new thread asking for advice on how to get someone to accept an offer. I had been looking for 5 months and was beginning to think that perhaps my offers were unreasonable for the current market climate - we had very strict parameters however that we could not really stray from , as it is important to us to be able to provide housing my parent in laws , and we will also be occupying a unit ourselves. That is why we were hoping for a fourplex , but I am still happy with a triplex - its in a very nice area and has lots of space and all of the things we were specifically looking for. I saw many properties that I would have liked to purchase strictly as investments, but my money is tied up in the current deal. After close, we are going to save some more money and start all over, this time it will be for pure investment and not to live in or house family - I am considering doing a couple wholesale deals to raise some cash for the next rental. I will watch and listen to whats going on at this site and start formulating a plan to take action - perhaps find someone who has done it before and bring them into or something. Right now I am just happy that we are breaking ground and moving forward on a multiplex.

thanks for the encouragement!

Awesome Jay,

Glad it's on its way to completion..

I'm still learning me some ropes.. checking out multiplexes and SFR in multiple locations.. I hope to put down 25%.. since I did FHA with my primary residence..

Hope to follow your ropes shortly

Originally posted by Ben Kevan:
Awesome Jay,

Glad it's on its way to completion..

I'm still learning me some ropes.. checking out multiplexes and SFR in multiple locations.. I hope to put down 25%.. since I did FHA with my primary residence..

Hope to follow your ropes shortly


thanks - I look forward so seeing how your progress. I will probably have to do the same thing as my FHA is tied up in this property - the next one I get will have to be conventional and require at least 20% down. - unless I find some hard money lender here on BP and then do a couple flips or wholesale deals -

quick update .. the property appraised for $30K less than the agreed upon price. At first I was really disheartened , figuring the seller would run as FHA would not loan on it - but the seller dropped the price by 30K and the deal went pretty smooth. Now that we've had it for a couple weeks and met the tenants - we are still very please with our investment and our incredible luck. Been waiting for the hammer to fall, but so far everything seem to be in good order. There is certainly some deferred maintenance we would like to address , but nothing that is urgent or cutting into our immediate cash flow.

Congrats Jayme!

For future reference, consider looking at HUD properties...they give preferential treatment to owner occupants, even when there are lots of contingencies...

Originally posted by J Scott:

For future reference, consider looking at HUD properties...they give preferential treatment to owner occupants, even when there are lots of contingencies...

sounds interesting , I'm hoping not to have to do an owner occupied again ( unless it's an sfr) , but we were starting to look into the 403K loans - seems to be some kind if government sponsorship for programs like that. are those similar to how the HUD homes work?

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