Investment Info:

Small multi-family (2-4 units) buy & hold investment in Savannah.

Purchase price: $350,000
Cash invested: $33,191

4 Unit Quadplex in Savannah, GA. Using my VA entitlement (I'm active duty Air Force), I was able to get into this deal for

What made you interested in investing in this type of deal?

I was on the hunt for a Quadplex because I knew I could use my VA to purchase up to 4 units. By combining the 0 down VA with the BRRRR strategy, I was able to get into my first deal for little upfront money!

How did you find this deal and how did you negotiate it?

I found this deal on the MLS. I used an agent to negotiate the terms, however, in retrospect I probably could have talked them down more than just $4,500. I was able to work in a brand new HVAC for one of the units, however. So it's not all that bad.

How did you finance this deal?

I used my VA entitlement to finance the deal at 100% LTV!

How did you add value to the deal?

I've rehabbed 3/4 units. Most of the units needed cosmetic updates including new kitchen/bathroom countertops, new tile floors, fresh paint, and some basic electrical upgrades. Each unit's rehab averaged ~$12,000.

What was the outcome?

After rehabbing each unit and recycling the "trouble tenants," I was able to double the rents and positively cash flow!

Lessons learned? Challenges?

I learned many lessons with this first deal.

1). Get a second opinion on contract work. Make sure you get qualified bids from qualified people!
2). Hire a Property Manager! It's not worth the time or headaches dealing with "trained tenants" who don't want to pay rent.
3). Build a system to control costs!
4). Save every receipt for your CPA. Build a system that allows easy tracking and recording for tax time!