Investor · Jensen Beach, FL · Member since 2014 · 132 posts · 33 votes
Hey everyone!
No one else seems to care about my excitement so i thought i'd share it here!!! I'm so excited to be closing on my first "intentional" (i became an accidental landlord with a townhouse in Virginia) rental property today!! A 4-plex in Cedar Rapids, IA... i attached a picture below! I picked it up at 113k, with an interest rate of 4.650 (total loan balance of 90k). The seller is also giving me 3k at closing for cosmetic repairs. The units are 2 bedroom, 1 bath. It currently has one vacancy. I have some outside work to do on it (i.e. siding replacement and landscaping, redo the balconies) and simultaneously "flipping" the vacant unit (new carpet & linoleum, new paint, new counter-tops, new A/C unit). The units rent for 495 each, but after the flipping I'm upping the rent to about 560-595, depending on what the market will allow.
My husband and I will be managing the property ourselves, so any hacks or tips you can help me out with would be GREATLY appreciated! Hope you all have a great day :).
Investor · Vancouver, WA · Member since 2013 · 3k+ posts · 4k+ votes
12y
Congratulations! Looks like a great acquisition! If "no one else seems to care about your excitement", surround yourself with those who do! Join a local REI group too. Don't be discouraged by nay sayers and those who are indifferent. Follow your passion!
Being new to landlording, you will need some good tools. Set good rental criteria and screen well. Use a comprehensive rental agreement and hold tenants accountable. Address problems swiftly when they arise. Look at some of the BP posts about acquiring property with tenants in place. Also, check out the resources available to you on the BP website. Take a look at the Tenant Screening/Interview questions I contributed under Resources:File Place:Other Documents. All the best to you!
Investor · Queen Creek, AZ · Member since 2014 · 35 posts · 14 votes
12y
Congratulations!
My husband and I just bought our first multi-family property in Arizona this past summer. I love getting the check in the mail every month from our property manager. It is nice to have a community of like minded individuals here on BP to cheer us on when we have made a purchase. Especially when you receive mixed responses from friends and family!
Rental Property Investor · Easton, PA · Member since 2013 · 357 posts · 92 votes
12y
Great Job Rebecca :) Have your done the comp search on nearby rentals to see if the 495 is market value already ? And are you managing the property in VA yourself as well. I started the same way in becoming a long distance landlord due to a work related move
Rental Property Investor · Fredericton, New Brunswick · Member since 2013 · 7k+ posts · 4k+ votes
12y
Originally posted by @Account Closed:
Hey everyone!
No one else seems to care about my excitement so i thought i'd share it here!!! I'm so excited to be closing on my first "intentional" (i became an accidental landlord with a townhouse in Virginia) rental property today!! A 4-plex in Cedar Rapids, IA... i attached a picture below! I picked it up at 113k, with an interest rate of 4.650 (total loan balance of 90k). The seller is also giving me 3k at closing for cosmetic repairs. The units are 2 bedroom, 1 bath. It currently has one vacancy. I have some outside work to do on it (i.e. siding replacement and landscaping, redo the balconies) and simultaneously "flipping" the vacant unit (new carpet & linoleum, new paint, new counter-tops, new A/C unit). The units rent for 495 each, but after the flipping I'm upping the rent to about 560-595, depending on what the market will allow.
Rebecca,
First congratulations are in order.
Second, I'm easily confused and am uncertain I follow your use of "flipping". Are you planning to {cosmetically} upgrade the building and flip it or renovate/rehabilitate and hold for the long term?
If the latter, I would suggest you start by fixing what is essential - whatever your building inspection outlined as urgent - to maintain the integrity of the building. I would then focus on improving the inside (units first, common areas next) before the landscaping and siding (it presently does not look that bad). While curb appeal is important, as long as things look neat and kept outside, your tenants will care more about the inside of the actual units.
Does the building have a very shallow pitch (3-4/12) hip roof or is it a flat roof? What is the condition of the roof (how many years old and how long did your inspector forecast until replacement)? Either way you will naturally start building reserves for its replacement, but if it is a flat roof, you may want to investigate the feasibility and cost of building a hip roof over it when the time comes to replace it.
Investor · Jensen Beach, FL · Member since 2014 · 132 posts · 33 votes
12y
@Roy N. Thanks!!! By 'flipping' i meant getting it up to standard to rent out. We are holding this building for the long term. We've had it just under a month and all the internal items on the inspection list have been fixed, along with the maintenance concerns of the 3 tenants already in place. The siding is aluminum and it's damaged in several places. It looks very unkempt. The problem with the landscaping is that it's so thick, it's hindering the drainage process when it rains.
The roof is a shallow pitch, i believe the inspection said 7-10 years for replacement.
Rental Property Investor · Central Texas · Member since 2014 · 31 posts · 5 votes
12y
Congratulations Rebecca! I'm very new to this and therefore extremely excited for your first "intentional" acquisition. I hope to post about my first acquisition soon.
Investor · Catlin, IL · Member since 2013 · 16 posts · 9 votes
10y
These are good numbers as well as a nice looking property. If you are able to make some improvements in the other units and increase the rents as tenants move out you will be able to create some additional value down the road. It seems like this is a solid investment. Nice Job!