I am a new investor and I am looking to buy a multifamily home. The only thing is that the home I am looking at is a highly distressed duplex. I have an idea of rebuilding it and converting it to a fourplex, which I know cost a lot of money. It's in an awesome up and coming area, but I have no idea where to start. My ultimate goal is to live in it and rent the other units out.
I was hoping if you can provide any advice for me about first steps, construction loans, financing, and/or rehab.
Look forward to the feedback.
@Carmelita Sritragool I would advise against a highly distressed asset for your first multifamily deal. It would probably make for a very stressful experience. I do have a couple of questions for you about the property:
1) Are you investing with your own money?
2) How long do you want to live in it?
3) Do you know what the local market rents are for these types of units?
If you are a new investor then I would highly suggest that you join a program to learn more about all of the various areas in multifamily investing. It is a difference animal than single family.
Learn from other peoples' mistakes so you don't lose to much time and/or money. You will thank me later. :-)