Quadplex Investing Questions (Clarksville, TN)

Rental Property Investor · San Antonio, TX · Member since 2018 · 13 posts · 0 votes

I’m new to real estate investing with little experience, I just jumped in before I could talk my self out of it and currently have 1 single family in Biloxi, MS renting for $1350. My strategy moving forward is to invest in multi-family properties in the Biloxi, MS and Clarksville, TN area. I’m currently pre approved for $240k through the VA Loan. My question is how do I evaluate a multi unit to make sure I’m making a good investment? Also, I’m specifically looking for a four unit quadplex because to qualify for the VA Loan one of the units must me my primary residence, is there any difference when evaluating quads vs tri’s and duplexes? Lastly, since the VA Loan is 0% downpayment and I’m not paying anything out of pocket how would I calculate the ROI?

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Bryce Stclair

Rental Property Investor · Clarksville, TN · Member since 2017 · 91 posts · 147 votes

Hey Eddie congratulations on diving head first into investing in real estate ! All great questions when it comes to

investing in quads. I can only speak for the Clarksville market because its what I know. One main factor that effects rent is

how close it is to the post. The closer to post the more rent rates go off BAH. Also value add can be pretty hard to do on

Quads in the area. They are normally built around many other quads. Putting all new flooring in and such might not be

the best option for your best ROI. I would look at buying washer and dryers for each unit you could raise rent at 50 a

door if the other quads around you don't have them available with rent. Know your competition and how you attract

renters to what you have. As far as calculating your ROI goes, you could pay your VA funding fee up front and that would

lower your purchase price. There are less tri's and duplexes in this area but I think the key things making sure the

numbers work for your investment! Let me know if you have any other questions!

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Greg Moore
Real Estate Agent · Biloxi, MS · Member since 2018 · 2 posts · 2 votes
7y
Eddie, there are a lot of nuances and variables to your questions. I’m actually a real estate agent that lives in Biloxi (Woolmarket). If you’d like to get together sometime and discuss this more in-depth, I’d be happy to help.
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Bryce Stclair
Rental Property Investor · Clarksville, TN · Member since 2017 · 91 posts · 147 votes
7y
Hey Eddie congratulations on diving head first into investing in real estate ! All great questions when it comes to
investing in quads. I can only speak for the Clarksville market because its what I know. One main factor that effects rent is
how close it is to the post. The closer to post the more rent rates go off BAH. Also value add can be pretty hard to do on
Quads in the area. They are normally built around many other quads. Putting all new flooring in and such might not be
the best option for your best ROI. I would look at buying washer and dryers for each unit you could raise rent at 50 a
door if the other quads around you don't have them available with rent. Know your competition and how you attract
renters to what you have. As far as calculating your ROI goes, you could pay your VA funding fee up front and that would
lower your purchase price. There are less tri's and duplexes in this area but I think the key things making sure the
numbers work for your investment! Let me know if you have any other questions!
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Alina Trigub
Rental Property Investor · Glen Rock, NJ · Member since 2015 · 3k+ posts · 2k+ votes
7y
@Eddie Woodside Use BP rental calculator and account for multiple units when underwriting it. Also, in terms of deciding whether it is a good investment, location, market condition, demand and supply are equally important.
Last but not least, looks like @Greg Moore offered you a local expertise which is great. Network with other local investors as well.
Best!
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