1 yr after reading Rich Dad, Poor Dad & finding BiggerPockets

[Johnny McKeon]

Hey BiggerPocket's!

Here's a little backstory 

1 yr and some couple of months ago, I was at the Joint Base Lewis–McChord library in Washington State. It was the 1st time I got my hands onto Rich Dad, Poor Dad by Robert Kiyosaki & it was my first time that I devoured any book in one sitting (That's a miracle in and of itself). Then later, I stumbled onto to the BiggerPockets podcasts. Ever since, I have been hooked to anything real estate related. I just can't get enough! Whether it's watching YouTube vids, podcasts, books, blogs, or just talking to anybody about REAL ESTATE

Well, on September 6th, I bought my 1st property and it happens to be a 4-plex MFR which I acquired at the trustee sale at the Pinal County Courthouse. I was the only bidder & I purchased it for $211,331 using a HML with 25% down, 12% rate, 11mo term, with a $225 transaction fee and a $200 payoff fee payable at the end. For other 4-plex's in A.J. that have sold , i estimated the ARV at 220k-230k, conservatively. It was hard paying that much because of listening to other people & reading about them finding extremely discounted properties to rehab, rent, refinance. The property is located in Apache Junction, AZ and is considered a lower income area with rents from $600 to $725. I've gathered that just from talking to a couple of tenants in the area..In the beginning I had a title check done and a city tax lien showed up from 2012 in the amount of $4,100 with interest accruing .27 cents a day so I thought the lien was $5,926.35. Come to find out the lien was actually paid down by the owner (before he died) or the owners nephew (who was collecting rents) to the amount of $694. The Sewer bill was $1,500 but was paid down to $894 by the 2 tenants who happen to still be living in two units rent free with no leases. Oh, and for some for not-so-good news this property happens to have bed bugs and a putrid smell from animals & rotting food in the fridge. YUM! For the rehab, I like the idea of vinyl plank flooring, semi-gloss paint (because I've heard some people say it holds up better with tenants), new cabinets, counter-tops, appliances, popcorn ceiling removal, light fixtures, new water heater, fans, new windows. and something to put on the concrete that kills bad odors.

What would you do?

-0% down VA financing to pull what money I put into this out.

-or conventional investment loan at 25% down ( I have just under 100k but with 25% down & rehab work I won't have much money left for other deals unless I use VA financing to move into a primary home (another 4-plex) then I could have 1 official investment property and 1 primary aka another 4-plex for a total of 8units)

For the tenant situation, I'm thinking I should put them on a month to month lease for the time being since they are already living here and they can help me pay for the hard money monthly payment which is $1,584.98 while I get the 2 vacant units stabilized. 

What are your thoughts or opinions?  

Feel free to be critical, offer advice, or ask questions for more details. It'll not only help me, but others too.  So, don't be afraid. I can only learn from this & grow from this.