Investor · Squaw Valley, CA · Member since 2016 · 14 posts · 15 votes
Hello everyone,
I have been silently reading and viewing all the great info BiggerPockets has to offer. I have been in the learning phase for the better part of a year now. I want to thank everyone for the great content that helped give me the confidence to take the plunge!
I was able to find a good deal in Fresno California. 6 plex with 2 bed 2 bath units about 950 sq ft each. Once I get the 2 vacant units updated and rented it will cash flow $240 per unit. There is definitely room to increase rents and I will have equity from the start (especially when I make some of the improvements I have planned). I did a lot of research before selecting my real estate agent and I hit a home run, he is a rockstar!
Once this property stabilizes I will be on the hunt for my next deal. Thinking about doing a flip next so I can build up enough capital to purchase another multi family with 5+ units.
Thanks for viewing
Jake
Surveyor · Hemet, CA · Member since 2015 · 797 posts · 112 votes
9y
@Jake Mchaley would love to go fishing sometime and invite you to my open office this year! I am selling some commercial property and inviting the whole bigger pockets crew!
Investor · Squaw Valley, CA · Member since 2016 · 14 posts · 15 votes
9y
we got the property for 390K.
I used traditional financing on a 30 year.
Most units are renting for $700 a month but the market can easily sustain $800 with these size units.
I will post pictures once I start in on some of the rehab.
1 unit just needs carpet to be rent ready. 1 unit needs tenents evicted and full rehab. The other 4 are fully updated and in great shape. The exterior siding will be another project and I will be converting it to stucco.
Surveyor · Hemet, CA · Member since 2015 · 797 posts · 112 votes
9y
@Jake Mchaley Awesome thread! I am looking to hit a home run as well on a multi family! I am looking in San Diego county so that one of the units can be a vacation unit to try to maximize cash flow. If you were a cash buyer would you have gotten a better deal? Just curious seems like you did well! Can't wait to get my first set of keys!
Investor · Squaw Valley, CA · Member since 2016 · 14 posts · 15 votes
9y
Thank you! very good idea with the vacation rental unit!! Fresno isn't the most ideal vacation hot spot. For me all cash would kill my cash on cash return. You can get 2 good deals with loans and maximize your cash on cash return. Good debt will make you richer over time!
Surveyor · Hemet, CA · Member since 2015 · 797 posts · 112 votes
9y
@Jake Mchaley would love to go fishing sometime and invite you to my open office this year! I am selling some commercial property and inviting the whole bigger pockets crew!
Investor · Squaw Valley, CA · Member since 2016 · 14 posts · 15 votes
9y
I have had some interest on who my agent is, and I would be more than happy to recommend him. His name is Dustin Ilic with Newmark Grubb Pearson reality in Fresno. If you are interested in multi family in Fresno or any of the Central Valley cities he will be a great asset to you.
Investor · Santa Monica, CA · Member since 2017 · 43 posts · 13 votes
9y
Hey @Jake Mchaley! Ive been looking out in Fresno for commercial multi family as well! Congrats on your purchase! Mind if we connect to talk about the location and deal?
Surveyor · Hemet, CA · Member since 2015 · 797 posts · 112 votes
9y
@Jake Mchaley hi jake I just returned home from looking at properties around locally I and man I saw some old beat houses with some price tags straight out of Malibu! I am looking at once house it's totally condemned not even liveable and the asking is 200k. I am like the land is not even worth 100k i don't think at 2 acres. Are you ever in socal?
San Ramon, CA · Member since 2017 · 78 posts · 97 votes
9y
Jake Mchaley congratulation on your first property. You mentioned you used traditional financing, and was curious how you were able to do that on 6 unit multiplex?
Cheers,
Art
congrats! 6 units for 390k that rents up to $800? good deal! This makes the deal I'm looking in Fresno so expensive. lol. could you share some info on the financing? I'm looking for a lender at the moment. thanks!
Investor · Squaw Valley, CA · Member since 2016 · 14 posts · 15 votes
9y
Art mimnaugh it was traditional in terms of bank mortgage but it is a commercial loan. Hay Nguyen I used a bank based out of San Diego called community commerce bank. They were awesome and it worked out great.
Investor · Squaw Valley, CA · Member since 2016 · 14 posts · 15 votes
9y
here is an update on my progress with the property. We are working on the many deferred maintenance Issues as we go. We were able to rent the vacant unit for $800/mo very easily and we got a great tenant so far. 2 other tenants are on their way out (one rent was $580/mo and the other $625/mo) so we will get those 2 turned around and rented for $800 in a couple months. All the rest of the tenants are at $750 and will get small increases when their leases renew! I'm learning a ton and I am very greatfull that I was able to get such a good deal.
Art mimnaugh it was traditional in terms of bank mortgage but it is a commercial loan. Hay Nguyen I used a bank based out of San Diego called community commerce bank. They were awesome and it worked out great.
I see. That's good. Did you look into any local bank in Fresno?