All Forum Posts by: Jalen Greenlee

I second the point about not paying ridiculous amounts of money for courses. Read the books, listen to the videos, and go to your local REIA's.

With a 4-plex, it still falls under the residential bucket, so appraisers will lean on comparable sales rather than just income. If there aren’t other fourplexes nearby, they’ll typically pull duplexes, triplexes, or even larger single-family homes within a reasonable radius and then adjust for size, unit mix, and condition. That’s why those $300k single family comps you’re seeing are relevant, even if they don’t tell the whole story.

That said, I’d still run the income approach in parallel. Figure out your Net Operating Income and divide by the local market cap rate. While the appraiser might not base their valuation entirely on that number, investors do care about what the property can produce. If the income-based valuation comes in stronger than the sales comps, that’s leverage for you during negotiation and a great data point for refinance conversations down the line.

I would look at it as comps will drive the official appraisal because it’s a 4-unit, but the income numbers tell you whether the deal actually makes sense as an investment. Having both perspectives will give you a much clearer picture of what you’ve really have.

Congrats on the duplex Coty, sounds like a solid buy. For the upstairs I’d hit flooring and paint first since those make the biggest impact. Swapping light fixtures and hardware is a cheap way to modernize too.

Washer/dryer is nice if hookups are easy, but I’d tackle it after the basics. The thermostat issue is worth fixing right away. A mini split is ideal, but even separate baseboard controls will keep tenants comfortable.

I’d keep the rehab clean, durable, and functional. My order would be thermostat, paint and flooring, vanity and fixtures, then lighting and hardware. Add the washer/dryer if the budget has room.

Are you planning to just hold for cash flow or push rents and refi once the upstairs is leased?

You could always explore creative financing options like subject to or a wrap. I included some basic info on those strategies below.

https://www.fortunebuilders.com/p/subject-to-real-estate/

https://www.rocketmortgage.com/learn/wrap-around-mortgage

Welcome to the community Ronnie! 

Totally hear you. I haven’t dealt with this personally yet, but I recently read Investing in Real Estate Out of State by David Greene, and he lays out a helpful approach.

He suggests having contractors bid each job instead of paying hourly or daily. That way, you know exactly what you're paying for. He also recommends breaking the work into clear tasks with set prices, and setting up milestone payments tied to progress like part at the start, part in the middle, and the rest at the end.

If extra stuff comes up, he says to treat it as a separate bid, so you're not constantly renegotiating or overpaying. And always get things in writing, even if it's just a simple scope of work with timelines and costs.

Might be worth looking into if you're trying to keep things fair and organized.

Hey!

Last month, my wife and I purchased a fantastic duplex in Madison, WI, for $400,000 using an FHA loan. Our plan was to do the traditional house-hack, but things haven't gone as planned.

During some self-testing followed by professional testing, we discovered lead in several high-traffic areas of the home. Since the house was built in the 1940s, we should have tested for lead during the inspection. Unfortunately, we weren’t fully aware of how severe this issue could be, and now we’re facing the consequences.

The Current Dilemma

My wife is pregnant and due to give birth next month. The lead issue, coupled with an overall discomfort with the neighborhood and the home itself, has significantly impacted her mental and physical well-being. Naturally, she wants to be in a more comfortable environment to welcome our son into the world.

However, there's a legal hurdle. With an FHA loan, we're required to live in the property as our primary residence for at least one year. The only way to bypass this requirement legally is to refinance into a conventional mortgage. Unfortunately, we can't do this for another 200 days due to FHA restrictions.

Exploring Alternatives

One potential solution I’ve considered is working with a private lender. Here’s the idea:

• A private lender could pay off the FHA loan, allowing us to give them the first lien on the property.
• This would free us from the FHA restrictions, enabling us to move to a more suitable living situation while addressing the lead issue at a later time.

What I Need Help With

1. Private Investor Leads: Does anyone know of private lenders who might be interested in exploring this option?
2. Other Suggestions: Are there alternative strategies I haven’t thought of that would allow us to move legally and responsibly under the current circumstances?

We’d deeply appreciate any advice or insights. This situation has been incredibly stressful, and finding a viable path forward would mean a lot to my family.

Thanks in advance for your help!

Thank you for this helpful advice! 

Hi everyone,

I’m currently in the process of closing on two owner-financed small multifamily properties in Milwaukee, WI, which I plan to buy and hold. While I have the funds for the down payments, I’m in need of approximately $30,000 to cover the rehab costs for these properties to get them in market rent shape.

I’m exploring various options to secure the necessary financing and would greatly appreciate any advice or recommendations on the best ways to obtain rehab funds. Has anyone here had experience with this, or can you suggest any lenders or financing strategies that could be helpful?

Thanks in advance for your insights!

 THANK YOU @Drew Sygit you are the man!