1st deal a Quadplex??

Question

Hey everyone,

So I have been reading and researching for about the past year. I am super motivated to begin my real estate journey! I am active duty looking to get out around the end of the year with my husband who is also active duty we live in Ca currently, but plan on moving to Texas around Sep/Oct time frame. So I’ve been looking at houses to buy hoping to buy before we get out because I believe it will be hard to purchase in between jobs.

I found a quadplex in Tx and have been running numbers on the Bp rent calculator. My plan is to buy within the next month and when we move there househack one of the units. It’s near a university so there would definitely be the possibility of having student renters (I’ve heard good and bad stories about that). The units are all currently rented out at what I believe to be below market values based on comparables around the area. The property is in decent shape I got a video tour of 3 of the units. Based on calculations I also think the list price is too high for my numbers to work I would need to ask 15k below asking. It’s been on the market over 60 days. I plan on calling the realtor to ask more questions because all I have now is what Zillow gives me, video tour and a spreadsheet if current rent and sq ft of each unit.

I’m nervous to make it happen but also excited! I do have some questions to get some help.

Getting comparables for mfh seems more difficult than sfh are they comparable to each other?

What questions should I be asking the current landlord and/or real estate agent?

Is it rude to offer below asking and then ask for seller finance?

When running numbers should I be running each unit individually or the whole complex as 1?

Am I going in to RE too fast by trying to buy a 4plex as my first deal and out of state? Thanks y’all!

Lili Kagels · Answer

@Justin Brickman

Thank you! I appreciate the feedback. This helps!

Justin Brickman · Answer

I don't hate it! and you should run the numbers of the complex as one when using the BP calculator, not individually. Although the numbers really shouldn't be much different if you run individually vs whole.

Submit the offer how you have it; it's never rude to offer below asking, especially if it's already 60 days on market

And it should't be a difficult convo, just ask questions that would be important to your rental business. Have the tenants paid on time, why is the seller putting it on the market, is there any items/repairs you should budget for, etc

Lili Kagels · Answer

@Miranda Micire Thank you so much for helping me with those answers and taking the time to respond!

Miranda Micire · Answer

Getting comparables for mfh seems more difficult than sfh are they comparable to each other? Not necessarily comparable, I'd typically charge more for single family house versus an apartment unit because people will pay more to have a whole house to themselves.

What questions should I be asking the current landlord and/or real estate agent? Do you have an agent that can ask these questions for you and help you determine the questions to ask? I would ask them for the current rent rolls to ensure the tenants are paying on time monthly, as well as the leases to see when they are up and the terms.

Is it rude to offer below asking and then ask for seller finance? No, not rude. They can always counteroffer and the worst that can happen is for them to say no.

When running numbers should I be running each unit individually or the whole complex as 1? Whole complex

Am I going in to RE too fast by trying to buy a 4plex as my first deal and out of state? No it sounds like you're being thoughtful and not just jumping in head first! I think it's a great idea.

1st deal a Quadplex??

4 Replies