When is a 4-plex not a 4-plex

[Adam Jaggers]

Hey BP,

Wanted to share a huge win. I've been investing for a while now but I've been very hesitant to do any out of state deals. I liked the comfort of having my units close (even though I don't actually do the management myself). But after a couple years of really struggling to grow my portfolio in a meaningful way I pulled the trigger on an out of state deal. It is a 4plex 10 hours from my home.

I was extremely nervous when I got off the plane last night for today's closing. I was still weary about this deal despite having already identified a local team and run the numbers at least 1000 times. This was a good deal, it was going to work.

Then the inspection came this morning.... I was immediately disappointed to find out the building was in DESPERATE need of a roof. I had actually factored this into the deal as it was an older building but it's never fun to find out you're going to be spending another 25k on a deal even IF you had penciled it in.

Then the fun began as I started walking the inside of the building... Its not currently occupied so I strolled through all the units to get a sense of the layout before doing a detailed walk... I got a little turned around and walked it again... and again... Finally, I realized THERE WERE 5 APARTMENTS NOT 4! I was shocked.. How could the be? I immediately called the my agent and asked "Hey this is supposed to be a 4 unit building right?" His response was "Yeah man, 4 units and a bonus room" I called him and we got the listing agent on the line... "No no, it's only listed as 4 because the 5h unit needs some work". WHAT?!?!?! I had a great deal, all the numbers run, all the ducks in a row and it turns out there is an EXTRA APARTMENT?!

TLDR , Today I bought a 4plex that was actually a 5-plex. GO ME!