Quadplex Investing Questions (Clarksville, TN)

[Eddie Woodside]

I’m new to real estate investing with little experience, I just jumped in before I could talk my self out of it and currently have 1 single family in Biloxi, MS renting for $1350. My strategy moving forward is to invest in multi-family properties in the Biloxi, MS and Clarksville, TN area. I’m currently pre approved for $240k through the VA Loan. My question is how do I evaluate a multi unit to make sure I’m making a good investment? Also, I’m specifically looking for a four unit quadplex because to qualify for the VA Loan one of the units must me my primary residence, is there any difference when evaluating quads vs tri’s and duplexes? Lastly, since the VA Loan is 0% downpayment and I’m not paying anything out of pocket how would I calculate the ROI?

[Bryce Stclair]

Hey Eddie congratulations on diving head first into investing in real estate ! All great questions when it comes to 

investing in quads. I can only speak for the Clarksville market because its what I know. One main factor that effects rent is 

how close it is to the post. The closer to post the more rent rates go off BAH. Also value add can be pretty hard to do on 

Quads in the area. They are normally built around many other quads. Putting all new flooring in and such might not be 

the best option for your best ROI. I would look at buying washer and dryers for each unit you could raise rent at 50 a

door if the other quads around you don't have them available with rent. Know your competition and how you attract 

renters to what you have. As far as calculating your ROI goes, you could pay your VA funding fee up front and that would

lower your purchase price. There are less tri's and duplexes in this area but I think the key things making sure the 

numbers work for your investment! Let me know if you have any other questions!