Selling primary home to free up VA loan for a 4-plex

[Luis Pena]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Las Vegas.

Purchase price: $352,500
Cash invested: $20,000

4-plex: 4x2bd/2ba 6,969 sqft. Currently living in a unit so net 0 cash flow is zero but not paying for the mortgage.

What made you interested in investing in this type of deal?

To reduce my mortgage expense and the cash flow from a 4-plex are more then investing in Single Family.

How did you find this deal and how did you negotiate it?

Found it through Zillow/Real Estate Agent. On the market for $360K and each unit was renting out at $600. Now all units and property rehabbed and rent out for 800-850. Used a VA loan and moved in and switched units while rehabbing primary live in unit.

How did you finance this deal?

VA loan after selling my primary home to Open Door for a decent profit after a recent real estate bump.

How did you add value to the deal?

Repainted all units, updated paint on exterior patches, built a brickwall with neighbor. Updated some of the units kitchens cabinets, replaced with granite counters and appliances, added a backyard and window to sliding door conversion on primary unit.

What was the outcome?

Able to raise rents 200 to 250 per unit.

Lessons learned? Challenges?

VA inspection caused certain delays especially since sellers weren't able to come up with a roof repair receipt. Open Door is a great way to guarentee you can sell your property to free up a VA loan eligibility.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Jody Lenzie my real estate agent also does property investments and was really good. I also used a contractor name Jimmy Mendez that I would recommend.