Next deal: 1031 exchange for a Multi-Family Quad

[Zach Adams]

Good evening all - 

I'm looking to purchase a multi-family quad for my next deal. I have a SFR in Atlanta that has about $55k equity and could sell for $165k. CapEx has been one thing after another and every time I get it cash flowing, something else comes up. I'm basically in a protracted rehab. I love the house as I lived in it for 7 years before converting it to a rental, but I think my cash could be working harder.

I love the cashflow models of MFHs, and have decided I can probably get a 4-plex for around $200k.  Total rents I'm estimating to be $2200-$2400/mon.  In doing my calcs, I have a few questions for the group:

1) Do you still use 10% repair?

2) Do you still use 5% vacancy?

3) I know HOAs aren't usually good for SFHs or condos, but an agent today said there was a $300 HOA that covers landscaping, water, etc. Typical? Worth it?

4) Do owners typically cover water, landscaping, out of pocket?

5) I may go under contract sight unseen.  I have contacts in Atlanta that could walk the unit, and would plan on, of course, having an inspection done.  Thoughts or experiences with this?

6) any issues with doing a 1031 exchange from a SFH to a MFH? What is length of time I can hold the SFH sale proceeds before purchasing another property?

More questions as things advance.

Thanks!

Zach