First rental property investment (4 family)

[Kyle Andrade]

Hello BP community!

I figured I would introduce myself and possibly connect with other Real Estate Investors in the RI area. I am currently under contract on my first 4 unit rental property in West Warwick that I will be house hacking while trying the BRRR method. I have been actively searching for an investment property since December while specifically looking for at least a 3 family so I can have sufficient rental income to live rent free so I can maximize the use of my own money to renovate the property and get the most for rent for that area. I was not too fond of this property at first but my RE agent advised me that this could be the one I could go for since there wasnt any offers on it during the 2 weeks or so it was on the market and we could potentially low ball him and get a better price. Well he was right and we were able to bring him down form 375K to 356K. I know West Warwick isnt the most ideal town but it is on the Warwick border and close to the Warwick Mall and CCRI campus. I figured even if i did overpay a bit for the property the fact that I was able to put 0 money down on it due to my VA loan and the fact that my plan is to hold onto the property for the long haul anyways that it would be a good investment. I want to start getting heavy into REI and hopefully start buying a rental every 1 - 2 years and keep house hacking to reduce expenses as opposed to living in a single family (at least until I get sick of living in apartments) and I figured at 28 I better get a move on now to get ahead of the game!

A little more detail about the deal:

• VA loan so i was able to put no money down on the property.
• Was able to come to an agreement with the seller that he pays closing costs.
• rents coming in at $3300 (i will be paying my units rent like someone was living there) with room for increase.
• Interest rate of 2.625.
• The big ticket items (roof, electrical, foundation) are all in good shape. Most of the stuff that needs to be done is updates to the units itself. Such as bathrooms and kitchens but most of it is just stuff I want to update and not necessarily because they in dire need of it.

Curious as to what you guys think and I look forward to everybody's insight and personal experiences/opinions!!

Thank you,