Updated over 11 years ago on . Most recent reply
I think I am going to pull the trigger on first deal...
I found an off market 4 plex, asking price 240,000. Fully rented at $600.00 each unit. 2bd 2ba units built in 1980. It is a single story structure. Never been updated cosmetically. 3 year old 30 year roof, 5 year old central AC units, 2 year old appliances and hotwater heaters. Located in great area of town, and is the only 4 plex that i know of in the surrounding blocks. I estimate about 30k in updates. ARV 320k and the rents can easily be raised to 800-850 a month. Owner is out of state and has not kept up with property or local market.
I can use my VA loan and live in one unit (1 lease due in November) with the other 3 turning over staggered until July 2015. This will give me time to update each unit as they come open. I am single, so I don't don't mind living in a construction zone or moving unit to unit. I'll do what work I can, contract out the rest. Fulfill my requirement to live in the property and move on in a year. My out of pocket to get in will be a 2.5% VA funding fee and some other expenses. About 10k total. Taxes are killer at $3500 a year and I am not sure what insurance will cost. Plan on keeping it for the long run.
What say you?