Is a 4-plex too much for a first deal?

[Michael Breedlove]

Hey BiggerPockets! So, my wife and I are looking to do our first deal. We are in the Metairie, La (New Orleans) area and it seems like everyone else is also in the market for multifamily properties. We've been looking for potentially a duplex, but just aren't seeing any of the numbers work. We're considering looking into a 4-plex. In our area we would be looking at something around 425k-475k. We would do an owner occupancy. Hopefully find one with 3bdrm 2bath/unit for around 1k/month. We would plan to update each unit one at a time and increase rents. My question is....Is it wise for us to be considering a 4plex for our first deal? Any recommendations in regards to first time landlording a 4-plex property while moving our young family into one of the units as well?

[Tami DuBose]

@Michael Breedlove, any book you can imagine is in the notes from the podcasts. You have a wealth of knowledge in your local REIA and here on BP.

I'm excited for you guys and have a few thoughts. 

- Louisiana is a SUPER FRIENDLY to landlords state. Be thankful.

- You noted receiving prorated rents. You should also receive the deposits.

- Our first rental was a 4-plex. Easy, peezy. I honored the rents of the original landlord who did NOT have any written leases. I made appointments with each tenant (same evening) to "introduce myself & confirm any understandings from the previous landlord." I told them I'd need to confirm all residents with a picture ID & meet them.

- When I arrived, I had a lease. Started with small talk, exploring their previous landlord relationship, asked about needed repairs, and any insight they could share. I let them know I planned to do deferred maintenance & spruce things up. I wanted them to be able to lock in their rent at 6 or 12 months because "rents may be adjusted to account for increased taxes/insurance/maintenance."

- I also brought my rental worksheet (application) to be completed by me while I was there. It's a good way know them better. Plus, you need that stuff when an issue arises; eviction.

Feel free to call me if you'd like the worksheet or have any questions. I wish you amazing success on your new journey.

Tami 225.773.711one