Rookie Success-Buying first multifamily/live in while deployed

[Andrew Major]

Education: In preparation for my first buy, I have listened to every podcast from BP (mailed on a flash key from my girlfriend) before/during deployment to Afghanistan.  Read books like Rich Dad Poor Dad, Millionaire Next Door, both of Brandon Turner's books No and Low Money Down, 4 Hour Work Week, Never Split the Difference, and many more.  

Assembling the Team: About 4-5 months before going back to Fort Drum, New York. I started to reach out to the remainder of people missing from my team. I got pre-approved for a loan, I got my property manager, and already had my real estate agent.  

Finding the house:  Most houses on the market have been on for many months. And anytime a good one came along they got swiped up fast. I had 3 houses under contract and all fell through because people either wanted too much, wouldn't budge, or it would require a total rehab in which I do not have the time for as I am going to a training exercise for 2 months. I finally found a fourplex (2 2b1ba, 2 1b1ba fully occupied) that has been on the market for a while that my agent suggested to me. I lowballed a fair enough price but not insulting and it got accepted! The person selling was motivated because there was a sickness in the family (I did not know this beforehand). She recently renovated it because she was an investor and just had a new roof. I got it inspected (referred by many) and only minor things needed to be fixed in which the seller fixed for me. I did inherit tenants with pets and some are section 8. I will have my property manager do all 3 leases over again in the next 4 months when they expire (with his better more thorough lease) because the rents are way below market according to rentometer. 

The Numbers: 

-Purchase Price 137000, Appraised 143000

- Rent currently is $2000, Rent in 4 months 1950 (with me living in one of the units) Cashflow before -300 with me living in Cashflow after with me living -200. 

-I am accounting 10% vacancy, 10% management, 7% capex, 7% repairs. Utilizing a VA loan with floating interest rate (currently 4%).

- Mortgage, insurance, management, and property taxes will be about $1500

Looking Back/Reviewing:

- I wish I got more referrals for financing. I am closing this Friday the credit union has taken almost 2 months to get all the paperwork done, even though I am "preapproved". I know VA loans and etc take time, but the way I timed it I should have closed exactly when I got home. I should have cushioned more time.

- Did I assume too much risk by doing a live in because now I don't cash flow for 2 years? When I leave for another duty station I should be cash flowing $550. I also plan on airbnbing when I am there physically, going to try to get a roommate to fill the 2b1ba I am living in, or switching to a 1b if one of the other tenants leaves when we change the leases and bumps the rents to market price. 

- How much do you account for with pet damages? (I am thinking a fee of 200$ or adding a 25$ pet rent) I know my old place charged that price fee.  

- Should I get a CPA and do some cost segregation?  If so where? From local places like Watertown or Jefferson county New York. I don't plan for a majority of my portfolio to be here or incorporating should I do where I plan to incorporate or where I plan to have my portfolio.

- What else could I have done better? Thanks for all your help