Closed on a fourplex!

[Matt Slakey]

Hello BP!

Just wanted to share our first deal (woot!): 

Two duplexes on one lot, single story. All 4 units are 2/1s, about 750 sq. ft., W/D hookups, and a not-so-private patio for each unit. Gross rents are $2235, fully rented (2 section 8, 1 applying for section 8, 1 without assistance)

Sale price was 215k. The seller, his agent and my agent ended up contributing about 3k total. I needed about 60k to close (25% down plus reserves). I had 20k of my own money, 40k from my father-in-law. With both loans, it should cashflow about $160/month. 

Currently, base rents are $515, $535, $545, and $525. We are in the process of raising the base rent to $625/month. If the tenants decide to leave, we'll probably go for $650. Plus a consistent pet rent of $25/animal/month. The current tenants have between 1 and 4 pets each! 7 cats, 2 dogs, and some kind of caged rodent over the 4 units. Yikes!

I was starting to write a list of stuff I learned in this process, but it was becoming way too long and involved.  A big thanks to Josh, Brandon, everyone involved with the podcasts, and all y'all BPers. The collective intelligence and experience of everyone on here has had a phenomenal impact on my present and future! Thank you!