100k and under multifamily where would you invest?!!

18 Replies

so here's the deal I have 25k looking to buy a multifamily 4plex preferred. for 100k and under. I live in Las Vegas and this isn't going to happen out here or anywhere suurrounding Vegas but I keep reading and meeting people that are investing out of state into Midwest and southern states sooooo. my goals are 1.to cashflow 150 to 200 per door after expenses. 2. be in a C- or better community with not so high turnover rates where in the u.s would you invest? what state and city? why? what do you predict will happen in that area in the next 5 and 10 years? and what and where was your most recent buy and hold purchase?

this sounds like a good way to lose 25k if not more. You're going to get terrible tenants and probably have trouble finding a GOOD property management company do this. If you were a local and experienced you could make this your niche, but you're not. Duplexes go for that amount and you want a 4plex lol and C or better.......... lol.

@Matt K. duplex would be fine with me as long as the cashflow is there, fourplex is preferred I know it's a long shot at that price range. I've heard of people having some great investments in Midwest areas in this price range. do you currently have any properties out midwest? if so what are your numbers like? and what parts? thanks.

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You can look into Cleveland, Milwaukee or Memphis. I'm sure there are others but those are a few that come to mind. For under $100k, you can get duplexes for sure. Maybe up to a 4 plex if it needs a little work. Do your research and find a local team to help you. 

Using 3.5% FHA loan, you can buy a $200k to $300k 4-plex in Las Vegas C- area, $500 to $600 rent each unit, rent out the other 3 units, you live in one unit for free.

Case 1:

3.5% down payment of $200k is $7000.

$7000 down + $7000 loan fee = $14k

Case 2:

3.5 % down payment of $300k is $10.5k

$10.5k down + $7k loan fee = $17.5

Your $25k is enough as down payment to buy a 4-plex in Vegas

Good luck

@Mary L. I'm a Realtor here in Vegas I can get a 4plex in north Las Vegas for around 250k right now at least any one's that I'd want to own and rents are around 700 to 800 currently which is good. I understand house hacking I've house hacked and lived for free using room mates and understand it on multis too. however I already love for free and I own 4French bulldogs and 2 Boston terriers and run a small kennel from home so me living there is a no go. hence why I'm seeking out places for 100k or under so I can just use the 25k as a 15 to 25% down on conventional. I can find duplex here in town too for about 100 to 150k but im sure there's better out there. Vegas is to hot right now

@Rito Altamirano the numbers you are describing would be a 29-38% cash on cash return yearly for a rental. It is very difficult to get numbers like that without doing the BRRRR method to some degree. Which probably means you are going to need to find something dilapidated, find shot term funding, manage a rehab crew, possibly wait 6-12 months for it to season, then connect with a bank that will give 75% of your money back out of it in a refinance.

In my experience it is very difficult to find rent ready real estate that produces 29-38% cash on cash return without significant involvement in adding value economically to the property. 

Good luck though. Let us know how it goes.

@Rito Altamirano

If you do manage to find a 4plex for 100k, then it'll be in a D area and you'll have a lot of difficulties. With that amount of money, you should consider using the money to build up your warchest first. Do you own or rent? House-hacking is the way to go first to build up your warchest if you rent. If you want to invest in multis, you need more cash than that. Even with direct mail and finding off-market, 25k is simply too little. It is a good chunk of money to spend on marketing to make more money though if you know what you're doing.

@Rito Altamirano , I would be interested in worthwhile 4 plexes for around $250,000 in the Las Vegas area that would support a BRRRR. Please PM me. Thanks.

@Ray Lai I currently live very very cheap I practically live free already. so I'm not looking to house hack plus I have a built kennel and 6 French bulldogs on my property so me living in the 4plex is a no go. and yea you're right as far as neighborhood grade. but i think it also varys what you would personally consider D neighborhood's . here in Vegas I wouldn't touch anything south east which is all D rated but I'd jump on a duplex or fourplex in north Las Vegas. which is also considered D area. so with that said I'd consider "d" areas after some extensive research and in the specific areas. someone above recommended Cleveland I'm currently starting some research in suburbs of parma, Cleveland heights, and the lakes area.. there lots of duplexes and tri under 100k and a few 4plex under 150 with plenty of investors giving the green light on the areas. definitely going to research hard before making any moves anywhere. as far as using the cash for marketing. I've done wholesaling campaigns and stuff not my thing. at least not right now it's a sellers market and finding deals is a pain in the ***. and I just started a yellow letter campaign to pull sellers for that 3% commission definitely a lot easier to do right now then find below M.V deals. but it's my first time using hand written yellow letters as an agent and not wholesaler so I'll see how that goes. if I don't find anything worthwhile I'll just be buying more bitcoin with this money and wait until my next litter of pups drops so I can have some more cash on top.

@Rito Altamirano your competitive advantage is that you live in a decent market for cashflow. Focus on finding something local.

Nothing to laugh about! . Own a quad bought at 135 K in 2016, cash flowing value added worth 300K after value play. cashed out reserved, still with huge equity play. Holding for great neighborhood and income at just under 3K a month. They are out there.Just harder to find. do not buy duplexes for as much as suggested unless the numbers make sense per ROI, Cash on cash etc. Value play is Key

I'm in the Dayton,OH market and there are plenty of 2-4 units under 100k. You have to know where the decent neighborhoods are and where the D areas are. Having boots on the ground would be the only way to know for sure. @Rito Altamirano

Originally posted by @Rito Altamirano :
@Ray Lai I currently live very very cheap I practically live free already. so I'm not looking to house hack plus I have a built kennel and 6 French bulldogs on my property so me living in the 4plex is a no go. and yea you're right as far as neighborhood grade. but i think it also varys what you would personally consider D neighborhood's . here in Vegas I wouldn't touch anything south east which is all D rated but I'd jump on a duplex or fourplex in north Las Vegas. which is also considered D area. so with that said I'd consider "d" areas after some extensive research and in the specific areas. someone above recommended Cleveland I'm currently starting some research in suburbs of parma, Cleveland heights, and the lakes area.. there lots of duplexes and tri under 100k and a few 4plex under 150 with plenty of investors giving the green light on the areas. definitely going to research hard before making any moves anywhere. as far as using the cash for marketing. I've done wholesaling campaigns and stuff not my thing. at least not right now it's a sellers market and finding deals is a pain in the ***. and I just started a yellow letter campaign to pull sellers for that 3% commission definitely a lot easier to do right now then find below M.V deals. but it's my first time using hand written yellow letters as an agent and not wholesaler so I'll see how that goes.

if I don't find anything worthwhile I'll just be buying more bitcoin with this money and wait until my next litter of pups drops so I can have some more cash on top.

 Here is a solid resource for those looking into Cleveland. The Ultimate Guide to Grading Cleveland Neighborhoods.

@Rito Altamirano   Milwaukee is a great place to invest.  There are plenty of options that meet all your criteria for a 4plex.  If you are interested in going a little south from MKE to Racine, there are great options there as well plus you have all they hype about Foxconn coming to SE Wisconsin. 

Let me know if I can be of any assistance!

Tyler Smith

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