All Forum Posts by: Alex Rodriguez

@Jason Pabon Going straight to the listing agent was the same strategy I used as well. Just like you, I beat out the other offers. It does work.

As @Devon Preyer has mentioned do lots of research and talk to many locals there before you decide to buy in stockton. Not everything around the university is good. I lived there 10yrs and quickly realized there are some really rough spots. Best things would be to drive the area a few times to gauge what its like both night and day. Good luck!

I just purchased my 4 plex here in College glenn area 6 months ago and am a little jealous of your price lol jk. Awesome work!!! What part of Sacramento is it in?

I agree with most that have said you need to transition over to a dumpster and hire someone other than a tenant to come out weekly or bi weekly to push it out and back in. The other thing with regards to the messiness you'll have a difficulty the majority of the time. There are ways to mitigate the issue. I have a 4 plex where random people were dumping furniture and other trash. What I did and it actually worked was put a wireless (ring, blink, etc) camera right above the garbage with a sign to "monitor" any illegal dumping. Ever since I have installed the system, the dumping completely stopped. Doesn't mean it wont happen again but sure has been a great deterrent. As far as needing the internet service to connect the camera I asked one of the tenants if I could hook it up to their wifi to help with the issue and they were happy to help. If you find none of them want to, offer a slight discount for the access.They will more than likely work with you. Good Luck!!

I had been in forbearance 1 month before buying my 4 plex. To be honest I did not need to be in forbearance and decided to put it on as "just in case". I paid the amount owed (3months) and called to remove the forbearance this was done that same day. My other lender  for 4plex did not even bring it up. I doubt a lender will allow the loan while IN forbearance as you are going to be considered extremely risky. This loan was with HomePoint Financial.

@Jon De Jesus I know someone that just closed on a 4plex and was short on funds just like you and by short i mean had too many cash deposits that would not count towards the reserves  needed. Basically same situation though. The way he was able to get funds accepted was to "sell" a corvette he had and provide a bill of sale, release of liability, and a kbb of the value. Granted the bank "Lender" does not and nor should you bother to disclose who you sold it to(as in "i sold it to my brother, cousin, best friend"). his best friend decided to "buy" the car from him and he will be "buying" it back immediately. The loan was processed with no issue, they just want to see where the extra cash came from, a legitimate place that wasn't a personal loan or gift. Hope that may help as it was the only way for this person to close ;) "sell" what you can and use that as funds.

Everyone here has made great points. Here in Sacramento it's a sellers market. I just bought a 4plex, put in the asking price offer without looking inside the units. 4plex was 30k cheaper than any other 4plex around figured it was a better deal. Agent basically didn't want to disturb tenants until absolutely necessary. Granted I did have inspection contingencies. Once inside one of the units will need full remodel, I then negotiated 13k price reduction with no issues. Don't worry about making an offer site unseen, just make sure to have your contingencies in place and you can always back out if negotiations don't work out. 

First things first is either get married or have a very thorough contract if things went south if you and your gf go separate ways. 

Do just as @Lee Ripma mentioned. If its a good deal  just dive in. I was in your shoes 6 months ago. I really wanted to buy a 4-plex as my first deal 20% down, but that didnt pan out as it fell out of contract due to huge plumbing issues. I didn't give up though, a month later a sfh came up for sale that worked for me and I was able to purchase that 5% down owner occupied that i'm now house hacking, I pay $0 out of pocket. Im living for free. Well its been 6 months later and I am now in contract on a sweet 4plex and expect to close in 8 days. this will cash flow $700 a month now and once rents are increased in 60 day i will be at $980. Don't give up and keep analyzing deals, Patience is key, jump right in if it works for you. 

@Jesse Hinaman I'd definitely take you up on attending that meet up. Im closing on a property near sac state and would like to hear what you have done with student housing. I'll pm you.