Updated 4 months ago on . Most recent reply
Jumped into the deep end and hope not to drown
Hello BP Community,
I'm new to the community as well as real estate investing. I went into real estate as a realtor after retiring from the US Army. I wanted to learn as much about real estate, laws, investing, and making general contacts before I dove into my goal of one day investing. I attended a few foreclosure auctions in person just to watch and ask questions and have watched a ton of Youtube videos and taken some investor courses. After being on the sideline for a few years a deal came across that I could not pass up. I just hope I didn't bite off more than I could chew.
I purchased a 4 unit multifamily that is a half mile away from a small public university in GA. Each unit has 4 bedrooms. Each bedroom has 4 bathrooms. Each unit has a shared kitchen, dining and living area. Totaling 16 bedrooms and 16 bathrooms. The apartment complex was built in 2007 and used to be run by a church. It has been vacant for 2-3 years and was occupied by squatters (now gone) and needs extensive cosmetic repair and upgrading. So far I've had the roof, electrical, plumbing, and HVAC inspected. I will need 3 of 4 new HVAC units which has been quoted to me for $32K (all 3 tons). Two different contractors quoted over $70k in renovations. I'm currently looking at a DSCR for the additional funds for renovation.
I plan on renting out rooms to students as there is a housing shortage at the university. Current rents (per room) in the area for a shared space like the one I'm providing goes between $650 - $800. I plan on somewhere in the middle.
My biggest fear is becoming overwhelmed with 16 tenants and issues (especially college students). I've owned and rented property before but it was usually renting out our primary residence after receiving orders to move from the military. I've had 50/50 experience with tenants. Some were great, some were terrible. None in the middle.
I guess I'm looking for guidance in my next move. After renovations, I will begin marketing and working on getting them filled before the next fall semester but then should I just pay a property manager or use RentRedi and the other software tools and self manage. Also any other additional guidance to keep me from drowning now that I've jumped into the deep end would be greatly appreciated.