All Forum Posts by: Brian Garlington

 Thanks for the tip Brian! I did a quick search and found that the Multifamily properties here in the South Bay are really scarce in supply. But I will see what I can do :)

Investment Info:

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

Purchase price: $1,305,000
Cash invested: $100,000

Vacant 4-unit in North Oakland, on market, purchased with FHA financing. Small cosmetic rehabs, good tenant selection, and it cash flowed from Day 1.

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

After a smaller owner occupied situation with the duplex, we moved into one of the units in the fourplex. The strategy worked once, so we replicated it.

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

On market deal, but it wasn't marketed very well, which is something I always look for. Also, the building was mixed use (one commercial space) that turned off many would-be investors in a property in such a good location. We paid a small premium so that the seller would choose our offer despite the FHA financing.

How did you finance this deal?

FHA. People in the Bay think it's impossible, but many sellers will patiently wait if they (a) trust that you know what you're doing and (b) make it worth their time -- i.e. add $10k to the purchase price for the extra month the closing might take.

How did you add value to the deal?

Mostly small cosmetic improvements -- kitchen upgrades, paint, etc.

What was the outcome?

Lived there for 3 years for free, now it's cash-flowing nicely.

Lessons learned? Challenges?

Commercial spaces are slightly different than residential (obviously), but it's not rocket science. And in some ways, the long term leases that you negotiate with those tenants can be a positive.

Hi BP Community!

I have decided to enter the field of RE investing and I am still extremely new to it (less than a month). I live in an expensive area (San Jose, CA) so the way I would like to begin my investing career is through house hacking. I know that since the Bay Area in general is so expensive, its unlikely that I would find a cash flowing property, but I believe it may be possible for me to make a good deal where I could at least live at a discount rate compared to what I would otherwise be paying in rent. I currently work a W-2 job with a decent income but I am cash poor and saving up for a deposit (planning for a FHA loan), and also have some student loans that need to be paid off (DTI currently is about 42%). I am not panning to quitting my W-2 job anytime soon but as I start to invest in RE and find house-hack deals, I have a few questions for the BP community to help me get started:

1) What are some tools I could use to find a good market near the bay area to house hack in? And are there any preferred tools (free or not free) to analyze house hack deals to see which deal would be a good one? I have been looking online and found tons of websites and videos and it could get overwhelming and so I wanted to see if there are preferred tools used in BP community?

2) Although I do not have cash saved up for a down payment at the moment, would now be still too early to look for real estate agents that have expertise in finding house hacking deals? I don't want the agents to feel like I am wasting their time if I still do not have down payment cash. is there anyone within the community willing to connect me with an agent they like?

Thank you all for your help! While I am still new to the world of RE investing, I know that the BP community will always be my side and I am excited to begin this journey of my life with you all!