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Updated about 9 years ago on . Most recent reply
![Leon Henry's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/181988/1621431518-avatar-lhenry.jpg?twic=v1/output=image/cover=128x128&v=2)
Evaluating a 4 family purchase ( looking for advice)
Looking to purchase my first 4 family home hoping for some residual income. I 'm a little scared because my first and only other multifamily purchase was a duplex and a bad investment that, however I have found ways to make it float itself.
This 4 family is located in a decent neighborhood. I don't believe finding good tenants will be an issue at this location. Each unit is a 2/1, the bedrooms are fairly some, but I believe they are work able especially with then location. The Electrical, roof, windows, and boilers are in good shape. Each unit is set up to pay there utilities with I really like. I am looking to spend 130K for this property, yes that does sound low for a four family but the area has low cost of living. I am thinking that I could rent out two units for $850 and two for $800 a month. I believe that each unit needs the floors refinished, work in the kitchens, new appliances and paint throughout. I am thinking possible 45K worth of work, thinking 10K per apartment. I am not to sure being new to remodeling homes. I am estimating that once all the remodeling is done the property will be worth say 200K thinking on the lower end to be safe. I also don't like that there is very little parking however there is parking on the street. I could possibly charge extra rent for the 3 spots in the driveway. I also don't like that the yard is very small.
Looking for insight and thoughts about this deal, seeing if I should jump on it or not....
thanks
Most Popular Reply
![Kyle Penland's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/263816/1621437307-avatar-kylep1.jpg?twic=v1/output=image/cover=128x128&v=2)
My question is do you have a team in place? 10k may work depending on the neighborhood. Are you doing the work yourself? Do you have a team in place to do it? Have you had any bids from contractors or are you pulling that out of your head? Make sure you have a bid on paper and know your numbers in concrete before moving ahead. Write down each thing that you need, go to lowes and price each part out, add 2500 to each unit for contingency fund, depending on it you may need more. Hope this helps!!! Can't stress the contingency fund enough!