2nd Multifamily—Under Contract !

[Evan Miley]

I decided at the end of 2020 to take advantage of the CARES act and pull some money from retirement accounts to make my next real estate purchase. I set myself a goal of 90 days to be under contract on my next multifamily property. I was looking for a 4+ unit property around $400k and striking out big time on the MLS, inventory is really low here right now and what was there was over priced, needed tons of work, or I just couldn't make the numbers work. One night on Facebook at the top of my feed was this great looking 4-plex in the center of town, about a mile away from my current duplex, so I messaged the seller asking for more information. She got back to me the following day with all the vitals and I did some quick napkin math to see what kind of deal this could be. I was happy. Super excited. Couldn't believe that I found it on Facebook, of all places! I called my realtor and he got us in to take a look at it almost immediately, and we put an offer on it Monday morning. They've accepted and we're moving forward in the process. Inspection went well with mostly minor things. The sellers have been really great to work with and I can't say enough great things about the guys on my team! Yes, I'm pretty new, but they're my team...this is the 3 rd property that I've worked with my realtor on and he's awesome at crafting deals in a way that gets them accepted with minimal fuss and really makes the whole process smooth. My mortgage broker is awesome as well. This will be the 3rd property I've used him for as well and even though we've only been working together for about 8 months he's definitely going to be my go to. His rates are amazing and he's just super easy to work with. Anyways, I'm rambling... just super excited to get some momentum going into 2021–One step closer to financial freedom!!!

[Evan Miley]

Originally posted by @Henry M.:

Congratulations... Care to share that napkin math with us?

 Sure. 4- 2br/1ba units, 398k asking, 25% down, 3.625%, winter expenses of $600 (summer is lower), rents at $900-1050/mo, monthly positive cash flow of $1500-2000.  Conservatively, a 3% appreciation market.