All Forum Posts by: Alejandro Valdes

Hello, I’m a real estate investor in the Miami/Fort Lauderdale area.

Now, my business model was to buy a 2-4 multifamily properties with 25% down that were fully rehabbed and ready to rent or already rented but i realize that it's a very basic and costly strategy and that I have been limiting my growth by tying so much of my money up into every deal so I've been looking into the BRRRR strategy but it's been literally IMPOSSIBLE to find a good and reliable General Contractor in my area. I was wondering if becoming a General Contractor would be beneficial. I've had my real estate license for years and it has certainly paid off big time.

Any input would be greatly appreciated.

@Jeffrey Chan

I agree with Jeffrey 100%!

Patience is key. I looked on Realtor.com and Zillow every single day and submitted more than 10 offers before I got one accepted.

Also, along with my offer I submitted my DU and proof of funds that proved that I could even buy the property with 25% down if needed but I chose FHA because I would have left very little money into the deal and keep my savings for the next one

I guess owner liked that accepted my full price offer even though there were multiple offers

It’s a legal fourplex and fully remodeled and fully rented. I even had to wait almost two months to move in because that’s when one of the leases expired

The only inconvenience is that I have to live there for 1 year and I made the mistake of letting the tenants know that I was the owner (HUGE MISTAKE). But time goes by fast so soon I’ll be able to move out and start looking for another fourplex and do it all over again

Not sure or there’s a limit to how many fourplexes one can buy as owner occupied but I’ll intend to do as many as I’m allowed to

Btw, does anyone know if there’s a limit as to how many house hacks one can do?

@Evelyn Castillo

Hello Evelyn, it’s not easy since our market is very competitive but it’s very possible so don’t give up

I recently purchased a fourplex in the Fort Lauderdale area for 620k with an FHA loan, 3.5% down, 3.25% rate and I made 3% realtor commission so it cost me very little. I'm living in one of the units and renting out the other three. My mortgage, water and sewage bill and lawn care are getting paid from the rental income and I'm still making a few hundred dollars in passive income. After one year I will move out and I will make from $1800 to $2000 a month after all expenses are paid and do it again!

It took me almost a year of looking and submitting offers to get this deal but it was worth it.

@Matt Devincenzo

Thanks again Matt, that’s exactly what I’ll do. I will research and learn as much as I can about zoning and codes before asking the planner and if I’m right I will pay a local engineer or architect to guide me before moving forward.

@Matt Devincenzo

Thank you Matt! I will have to go to the city to find out for sure

However, right across from my building there’s a 10 unit building that has the exact same square footage and is also RD-15

Hello, 

I've been considering turning my 4-plex into an 8 unit building in order to increase cash flow. Is this a good idea? 

4-plex is located in the Fort Lauderdale area, It consists of 2 duplexes facing each other, each unit is a 2 bed/1 bath so 8 beds and 4 baths in total and is each unit is being rented for $1500 a month 

Lot size is 0.25 acres, zoning is RD-15 and land use code is multi family 10 units or less 

I was thinking of building two more units on top of each duplex once our economy stabilizes of course! 

Also, i have a mortgage on the property so how would that work? Will i have to get a construction loan (or cash), build and then refinance my current loan based on the new appraised value in order to pay construction loan? Also, the terms will obviously not be the same since it will be an 8 unit building and i will have to get a commercial loan. I currently have a 30 yr fixed at a 3.25% on the 4-plex and that will be impossible to beat. What kind of terms will i be able to get on an 8 unit building? Approximately, how much will it cost to build 2 more units on top of the existing duplexes? 

Any advise will be greatly appreciated 

Thanks in advance! 

Just called my mortgage lender and after waiting for 2 hours and 14 minutes I was finally able to talk to a representative regarding the possibility of deferring my mortgage payments and they said that they’ll defer the payments for three months but that they will report the late payments to the credit bureau and that at the end of the third month all three payments will have to be paid in full. How’s that helping???

I have money saved up but with three mortgages to pay for almost 10k and the possibility of tenants not being able to make their payments I can only stay afloat for a limited amount of time

I really hope the government does something about this and quickly

@Jaysen Medhurst Thank you.

Thank you! 

I bought a 4plex using an FHA loan in FL. I was just wondering if I really have to live in one of the units for one year. What if I don't? Do they do inspections? I had previously purchased a home with a conventional loan which is where I am currently living in with my family and the apartments are very small. Any advise?