Need advice on 4 plex acquisition

[Kanwar Sodhi]

Hey BP,

My wife and I bought our second investment in Georgia, SFH with 3 beds and 1 bathroom.

We had a good chunk down, 25%, and now are saving up for the next one.

We came across this solid 4 plex that just popped up and being it's on the market for 2 months now, we can definitely play with negotiations. However, to get this property, the lender says we need to put 25% down on this $270,000 property. With closing costs, that's approximately $70,000. There are some repairs needed, possibly $10,000 per unit.

3 units are still rented out, 4th one just went vacant. (Renting at $600 each -> rental market there can get me about $700 each when updated)

There's got to be away to acquire this and BRRRR it in some sort of way.

Any and all suggestions are welcomed!

[Jaron Walling]

@Kanwar Sodhi What you described sounds like a good investment but on paper it's probably not. The only way to BRRRR this property is by purchasing it well below market. I don't know market but the ARV (after a $40K remodel) would probably need to be at least $350K. If that's not possible I'd pass on the deal. The cash-flow at $700 per month barely meets the 1% rule, and you still get to deal with inherited tenants and unknown lease agreements. My advice?... walk the property and look for issues. Obviously it's priced to high or $10K per unit is way low and investors don't want to touch it. Cheers.