Just closed on my First Multi-Family!!!!!

[Jonathan Johnson]

Hello BP,

We just closed on a 4-unit apartment and I'm so excited! 

Here's the deal:
We have a SFH that we are renting out because we had to move for job/family. We bought that house with the VA Loan. The VA loan allows you to use again but you're capped at a certain amount as well as needing to spend a certain amount. We needed to spend at least $144,000.

We found a 4-unit for exactly $144,000! We that didn't leave me very many options for negotiations. BUT, here's what I was able to do: The place just needs some remodeling, no huge repairs. The bathroom sinks in all units are just old and chipping, the same with the tubs. The roof is in good condition but is older. And a few walls just needed either re plastering or just new paint. Other than that some appliances are old but everything works fine and looks great.

I met the seller when touring the property back in February and right then said,
  "I can give you your asking price, but would you consider a credit for repairs and covering 6% (the VA limit) of the closing costs?"
 He said he thought that was reasonable, he knew the place needed some updating. At first I asked for a $6,000 in repairs/remodeling because I guessed about $3,000 for stuff inside with some extra for the roof in several years. He countered at $4,500 and I accepted.

$144,500 Purchase Price
$4,500 side credit for repairs/remodeling
6% seller coverage of closing costs (about $8,000)
The Appraisal from the bank came in at about $156,000.

At closing I brought a mighty check of about $150. I got a check from the seller for the deposits and prorated rents for about $3000. And I'm getting another check later for $4,500.

We are moving into one of the units, and the other three are currently rented. All the leases are up around July, but that's when my first mortgage payment starts. Now to remodel, repair, and rent!

[Jonathan Johnson]