First Time Buyer -- Off Market Quadplex Aberdeen, WA
Hi everyone,
I am a current travel nurse who through being a renter of medium and short-term rentals for quite some time, have decided to get into real estate investing so that I can be the owner and rentee. I have been trying to decide between a single-family home that I could house-hack or a multi-family property and today, an ad for an off-market 4-plex that is in my area fell into my lap.
I have been reading books, browsing forums, and following real estate investors on social media to try and learn everything I can as my goal was to buy my first property within 6 months -- but today I think I may have stumbled upon a great opportunity. My question is, where do I start?! I am definitely experiencing some analysis paralysis and want to reach out to the seller, but do I get a real estate agent first? Do I even need one? Do I get a broker first? An attorney? An appraiser?
I REALLY want to reach out to the seller ASAP but definitely want to be prepared. Please help!
The area is Aberdeen, WA where there is demand for travel nurse housing and Airbnb rentals. Also, all 4 units are tenant occupied (which I would all to vacate and I live in one unit) but I don't have any information about their lease status, etc.
Thank you!
Ashly
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#5 Multi-Family and Apartment Investing Contributor
- Investor
- Shelton, WA
@Ashly Doran congrats on becoming a RE investor. An RE agent or Broker is not required but given your questions I would hire one just to be protected. You could reach out to the seller on your own and hope that you are not at her/his mercy. In order to get financials and leases you will need to make an offer and an agent or broker, one that you hire, would be very helpful.
I have investments in Aberdeen and can point you to an Agent should you want that. Feel free to PM me if you need help.
Hi Ashly, this is great! Rental market is god in that area. Please keep in mind off-market deals are not necessarily good deals, this is a common misconception. You need a local expert to help you with numbers, prediction, vacancy etc. Get a real estate agent and a lender first. They will lead you in the right direction.
@Ashly Doran Crunch the numbers with a broker familiar with multi-family properties as a STR or Mid-term rental and the fact you will be renting one of the units. I agree with @Bjorn Ahlblad in that you need your own buyer's broker to negotiate in your best interest and help you with analyzing the deal. You will also want to take into consideration the fantastic tax benefits and extra cash-flow available for owning a commercial property. It will also be important to know when those leases expire and whether you will be renting them out for 30 days or more (requires depreciation over 27.5 years) or for shorter than 7 days or <30 days at a time which require a 39 year depreciation schedule.
As mentioned above, whether or not it is a good deal will depend on the numbers, which we don't have in this thread. You will also need to have your financing lined up- Without a history as a landlord, you may have to qualify based solely on your income, and have the required down payment. You will want to get copies of the leases as they can make or break a deal (and you may not be able to purchase as an owner occupant if the tenants have leases). I, also, would recommend a RE agent, even if you have to pay their commission out of your pocket. The potential cost of missing something that an agent would catch can outweigh that cost significantly.
I own several rentals in Aberdeen and it is a good market. There are some things to watch out for in the area that a RE agent will also know to spot. I can't recall if multifamily zoning allows short term rentals, so you will need to confirm that.
Feel free to PM me if you like.
if anyone in the Aberdeen, WA area knows of a knowledgeable real estate agent and would like to share, I would be extremely grateful. I am soon meeting with the sellers and want to he as prepared as possible.
Thanks again everyone