First buy might be a 4 plex

[Patrick Dennis Gill]

Hello everyone!

I am still new to the BP community and real estate investing in general, but I have heard multiple times that house hacking a 4 plex is the best way to start out. I have an opportunity in Jacksonville, NC to do just that. It is a VA foreclosure so it is somewhat discounted, but it needs a considerable amount of repairs (water damage, mold, door frames rotted). Even with these additional expenses, I can get the BP multifamily spreadsheet to turn out a positive annual cash flow (though only about 1k for a 30yr).

My question is, is this actually a good idea? I have the money to put down for the down payment and repairs, but that does spit out a low ROI. Also, I am using a 95% occupancy rate. The similar units around this one are all rented. I am about halfway through the due diligence period and this information about repairs is coming from the inspector I hired. I suppose I am just suffering the first time investor anxiety, but i thought perhaps some those smarter than me might have some insight.

Thank you for your time!