My first multi family

[Devon Tronrud]

Hello! New to BP as well as real estate investing! I’ve done years of research and seen tons of house in my city and finally deciding to take the leap and buy my first duplex.

I currently own a single family which I purchased 4 years ago which has compiled a net profit of 100,000$. This is just my monthly rents added up aswell as the appreciation on the property.

We’re tired of having room mates so we want to purchase a duplex and live in one suite and rent the other until we can refinance or have the buying power to get the next one.

I am a power engineer, I manage 1000 commercial retirement suites and have experience all over the board when it comes to maintenance. Also my accounts I have created with various suppliers in my city gives me extremely low pricing on all aspects of building materials. Hvac, plumbing, locks, flooring, paint, cabinets/counters....

Out of curiosity, I was just seeking some general advice that anyone would have for a beginner. In terms of infrastructure and general home knowledge I think I’m pretty competent, but in the accounting, investments strategy/lender side I am not.

I’m from Winnipeg MB and plan to buy in A/B neighbourhoods!

Any advice is appreciated!!!

[Will Fraser]

Hi @Devon Tronrud!  It sounds like you are on a great trajectory with the different vendors you're privy to and the experience you already have.  That's stellar!

In general with a house-hack the key thing to know is that the home (duplex, triplex, or fourplex) will be  valued by the appraiser using the comparable sale approach.  So, while a small multi-family that is a cash cow is nice for the pocketbook (and to be recommended), the appraiser won't use that to define the value (and therefore what the lender will loan on it).  You'll want to find something that has both a high probable re-sale value AND rental revenue that covers the nut. 

Good luck on the journey!

Will