First investment property: a quadplex

[Anthony Pinto]

Investment Info:

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

Purchase price: $287,000
Cash invested: $7,000

This quadplex is our first investment property. One unit we are house hacking; one unit is an AirBnb and the other two units are long term rentals. Since we are house hacking, we are not cashflowing on this property but we pull enough rent to cover the mortgage. Once we move out, we potentially stand to cashflow about $400 total ($100/unit).

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

I wanted to buy our first investment property using our VA loan which needed to have an owner occupied property. We wanted a MFH because you can get more units (and rent) for the price of a SFH.

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

We found this deal on MLS because it was listed about 60k higher than market value. We originally offered 290k (asking 350k) and they counteroffered with 325k, then we counteroffered with 310k and they walked. About a week later, they came back to the table and agreed to 310k. The VA appraiser came back with an appraisal at 287k which was a welcome surprise. We agreed to pay closing costs (~7K) for 23k off the mortgage!

How did you finance this deal?

Financed through a local bank with a VA loan.

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

Recommend anyone looking for a realtor to use, Melanie McDaniel is your woman. She also hosts one of the few Hampton Roads meetups on BP.