Interested in purchasing my first Quadplex and need advice!

[Evans Wright]

Hi Eveyrone,

So I am brand new investor and thinking about pulling the trigger on a quadplex.  Here are some of the specs: Built in 07, 2 bed/2.5 bath, 1372 sq ft.  When originally appraised the owner said it was $167.5K per door when he built it and is asking $600K for the whole thing.  Right now he is charging $1000 a month to and said the rent should be raised to $1200.  According to those stats im assuming it fits the 1% rule for what he paid to build the property.  

My train of thought right now would be to take out a VA loan with no money down and live in one of the units until I move away. So considering this is my first property I have looked at and still have a lot to learn I am looking to you all for your thoughts and is my course of action the best way to take or are there better options.

[Jean Bolger]

I don't know your market, but what it appraised for in 2007 ( right before the crash) could be an awful lot higher than it would appraise for now. In some areas prices have come back  strongly, but not everywhere by any means. And if you are looking at a 0% down loan then what it will appraise for becomes quite important, as you'll never get a bank to lend you more than the appraised value. Have a realtor who has some investment experience run some comps for you. And, as Bryan said, get some real rental comps.

Personally this deal is too thin for me. And, kind of on principle, I'm  against the idea of buying the first property you look at. Analyze a bunch more, and physically inspect several before you make an offer. It's common to worry about letting a "good deal" get away. But there will always be another good deal, and patience will pay off.

good luck!