Newbies owner occupy 4plex and Considering What Next!

[Michael Breedlove]

I did research, read books, listened to podcasts, and met with people who had real estate experience for about 2 years. Then my wife and I purchased our first investment property in May of 2017 in Old Jefferson, La (just outside of New Orleans). We bought a 4plex that was only about 12 years old and each unit was 3/2 and renting below market value. 3 of the units were also section 8 and I‘ve learned a lot about that as well. We renovated 1 unit just to give some cosmetic updates (ended up doing a lot more then originally planned) and we moved into that unit. We’ve increased rents on 2 of the other units and will be increasing rents on the third unit soon. We have had some unexpected A/C issues in 2 of the units over the past year. But, thanks to learning about budgeting for emergencies and CapEx we have survived and overall have had a challenging, but positive experience. Our plan has been to do the BRRR strategy and purchase another multi-family property. I am considering moving up to 5-8 unit commercial multi-family. I guess I’m looking for advice on commercial investing. Commercial financing. And honestly....am I’m biting off more than I can chew? My main reason for considering commercial is because 1) the duplex and triplex and even 4plex market in my area is very competitive and it drives purchasing prices too high. 2) I guess I’m kind of a pretty ambitious guy and my wife has followed my lead and trusted my guidance and I want to help our growing family (2 kids and 1 on the way) meet our financial goals as fast as I can! Thanks for any advice! Without BP I wouldn‘t be where I am today!

[Hadar Orkibi]

@Michael 

@Michael Breedlove most markets are competitive right now. you need to be more proactive and try and get some off market deals.

Did you try driving for dollars, knocking on doors or direct mail marketing?

If you want to learn, and its sounds like it would be a good idea, consider reading some books like Jake and Gino's Wheelbarrow Profit and Crushing it by Brian Murray.

These would give you some head start understanding more about the different between residential and Commercial mfr. 

Growing from 2-4units to larger building is natural progress, i don't thing is "

biting off more than I can chew?" unless you cant afford it. even if you cant qualify for a loan yourself, there are possibilities like partnering etc