Purchasing first quadplex.. Advise or suggestions?

2 Replies

Hello BP! I'm looking to purchase a quadplex (house hack) and the numbers seem to make sense. The issue or concern I'm having is, several years ago (approx 7) there was grown movement , (possible sinkhole) but current owners sued insurance after patchy work. Lawsuit was won and the job was corrected including any structure etc. They've had no issues since. The quadplex has been well kept, only one apt needs to be renovated but that would be he one I'd take. The other 3 have leases in place. The property appraisers website shows 'functional obsolescence' because of this of course... My hesitation or concern is the obvious.. Has anyone had a similar experience , or could shed some advise it would be greatly appreciated. Thanks

@Jay De Jesus Welcome to BP and congrats on taking action. A quad is an awesome place to start but there are many other things to consider besides what you mentioned. One thing I would definitely look at is the rent roll and leases for the current tenants. What do the rents look like in your area and how much are the current owners getting? Don't just listen to what they say ask to see actual bank statements or rent rolls and see what they are truly bringing in the bank every month. Really make sure to get the foundation, roof, and plumbing  inspected. These should be must's regardless of the situation but especially because of what happened in the past you want to make 200% sure the problem was truly fixed. Trust your gut, don't do the deal just for the sake of doing a deal. Sometimes the best deals are the ones you say no to! Good luck!

@Michael Guzik , thanks I'll make sure to look into that before submitting and offer..if it even gets that far.

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