Quadplex in Montgomery AL seeking advice

[James H.]

Hello BP community, I am a newbie living in So FL, that have been studying up and researching REI for almost 1 year; reading, podcasting and talking to everyone I can about my newfound passion. I think I have found my niche as a buy and hold 8-10cap multiunit investor and plan to focus all of my energy towards closing a solid cash flowing deal. I have analyzed over 100 properties and my girlfriend is sick of hearing about my potential deals:)

Recently I have begin placing offers on properties (mostly rejected); mainly outside of my area due to high entry point (downpayment) for multi units in So FL. My hunting areas of focus have been Fort Pierce FL, Jacksonville FL, Columbus GA and Montgomery AL. I have read many articles that say not to invest outside of your market and I can understand the rational and challenges involved. However I have been in corp America for over +20 years managing sales teams and products in remote markets. Albeit not REI but there's synergy. I am finding there are tons of tools, technology and resources that make not only finding good deals possible, but conducting due diligence, buying and managing remote properties very possible. I am interested to find out who else is seeing or not seeing this as an actual strategy opposed to taboo?

Next topic, I am currently working on 2 deals.
Deal 1
With my day job allowing me the flexibility to work from home where-ever I would like this makes the FHA possible for me. The property is in a Jax historic district. I plan to house hack it! The mortgage and expenses will be covered by the rental tenants providing me with positive cash flow. There is an issue with the title which supposedly is being handled by the seller. So that is holding things up a bit. They say could take 2-3 mos. But I thinking to ride it out because it seems to be a solid deal and extend the contract. Would you guys wait for this to clear up or let the contract expire?

Deal 2
(I know you were saying when the hell is he going to get to the subject title?)
My 2nd property in Montgomery AL. This one I can really use your help on BP Fam. It went under contract today. The seller has had a few deals fall through causing him to be very cautious. He asked for a $5000 binder that goes hard in 10 days. Sounds a bit crazy right? DD with the inspector is being this week. After 10 days it goes toward the purchase price w 20days to close. Here are the numbers:

Purchase Price $69000
Rehab est $50000
ARV $145000-$165000
Strategy: BRRRR

Refi in 12mos $115000
Rents: 650 per mos x 4
Add'l potential income (detached storage): $35 x 4

Total operating expenses:	Mortgage expenses:
Vacancy:	$126.75	Repairs:	$126.75
CapEx:	$253.50	Water & Sewer:	$300.00
Garbage:	$100.00	Insurance:	$150.00
Management:	$240.00	P&I:	$622.71
Property Taxes:	$75.00	Misc:	$60.00

9% CoCR with $500 per month cash flow

Your honest feedback comments and concerns will be greatly appreciated! As a newbie what should I watch out for? 

Thanks all!!!

Jay