Hello! and where to find Cash flow 4-Plexes?

[Daniel Ahern]

Hello!

I'm just getting started on BP.  Love it!  It's great to be connected to a community of like minded RE investors.  So much to learn, so much to do!!

------ THE PLAN ------

I plan to purchase $3 mil of small Multi-Unit properties by the end of 2016.  The general goal is to purchase *** FIVE ***  4-Plex's worth $600K each, where I put %20 down (so $120K down on each).

The stretch part of the plan - I'd like each 4-Plex to cash flow $2K a month. OK, well, if that's not realistic, I'm open to reason.

Ideal property is a C property in a B area (using an A,B,C,D area scale).

I live in LA but think the market is too overheated here to get anywhere close to the cash flow goal so am actively investigating & number crunching external markets (Atlanta, Tacoma, San Antonio, Charlotte, Austin, etc.). 

------ THE HELP I'M LOOKING FOR ------

I'm looking for help locating these small Multi's that can cash flow.

I'm also looking for input regarding the cash flow goal.  What's a realistic cash flow goal for a $600K 4-plex if I put 20% down?  I'm willing to work, search, direct mail market, submit 3 offers a day, etc. etc.  I've got 17 years experience with software so am very capable and actually really enjoy number crunching & analysis part of this.  Really interested in your input/experience/guidance on confirming my cash flow goal or setting a more realistic one.

Great to meet ya's,

Daniel

[Eric B.]

Greetings and welcome.  Well you certainly are ambitious.  Im experinced in the Tacoma market and thats how i was alerted to your post.  Your valuation for 4 plexes may be a bit high for the area but ball parkish may be closer for B+/A areas .  I have b properties in b/c tacoma area.  Multis are a bit pricy right now so your cash flow goal will require work to acheive locally but is fairly realistic.  My advice is to stay nimble and evaluate duplexes as well as larger units.  Why 4 plexes?  20% is available but you may find 25% to be more accessable.  Larger units or areas closer to sea-town or pemium neighborhoods in tacoma would allow you to get closer to your 600k price point but honestly that sounds like a cali price to me.  Higher price generally lower cash flow but better appreciation.  If you you like to talk feel free to reach out to me. Good luck in your quest.