All Forum Posts by: Andrew Bravo

Investment Info:

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

Purchase price: $317,000
Cash invested: $55,000

I acquired a Quadplex in 2021 with an FHA loan, investing ~$21,000 in down payment and closing costs, plus $30,000-$35,000 in remodeling. Currently house hacking and finishing the unit I occupy. The process has been gradual due to limited capital and DIY work. Nearing completion, aiming to finish renovations by year-end and move onto the next deal.

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

In 2021 I began listening to bigger pockets podcast episodes religiously and got the real estate bug. I kept hearing about house hacking and how it was the best way to get started so that's what I did.

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

I found this deal off market; it was my girlfriend at the time's uncle who owned it, and we pitched him the idea of buying it from him. Surprisingly he said yes, and we got the deal done.

How did you finance this deal?

I used traditional financing FHA Loan

How did you add value to the deal?

I've added a ton of sweat equity. and still am today. I have year of 7 years of experience with drywall, and paint work so that helped me out a ton.

What was the outcome?

I believe the property have appreciated in value just based off recent sales in my market area. At least 150k in equity.

Lessons learned? Challenges?

I've learned a lot on the managing side of the business, as well as the rehab side DIYing a lot of the work myself.

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

just a lender, he was good. I would definitely recommend him to others if anyone is looking for a lender in the Georgia/Tennessee area.

Hello fellow BiggerPocket members.

I have recently purchased my first quadraplex. I have inherited the tenants and 3 out of the 4 units are on month-to-month leases. One tenant in particular is giving me a hard time. The unit she is staying in has been updated within the last 2 years and her previous rent is below market value rent. I have presented a new lease to the tenant with a fair market value rent, but she refuses to sign it. I am willing to be flexible with her first month rent due purchasing the property mid month. After that month If she still refuses to sign the 12 month lease, what should my next steps be?  How many days am I legally obligated to give her to move out in the state of Georgia if she refuses to sign the new lease? 

@Allison Christine

Hi Allison, it’s funny this post is from 2020, almost a year later and I’m in the same boat lol the mls deals in my market is pretty much dry for multi family. Just wanted to follow up with you, have you done your first deal yet? And if so, did you figure out if you could finance an off market deal with financing through a bank ?

Any information helps as I am a newbie still iso my first rental property also looking to house hack !

@Nicholas L. Thats just an estimate for the insurance, and there is no shared utility costs they are sub-meter units already. Do you mean like curb appeal costs when you say grounds costs?

 Okay so each unit would rent for $700 that a total income of $1400.

mortgage payment estimate - $601 unsung FHA or conventional financing (still not sure) with 3% interest rate and 5% down potentially

Repairs and maintenance - 8% / $112

Vacancy - 8% / $112

Cap ex - 9% / $126

Management fees - 10% / $140

Taxes - $100 monthly

Insurance - $60 monthly

Total expenses - $1251

Total income - $1400

So I'm estimating on cash flowing $149 a month witch would be a 15% ROI

If I only rented one unit out and lived in the other then my rental income would a total of $700 instead of $1400. I’m assuming the fixed and variable expenses would stay the same? Or is that wrong?

@Nicholas L.

Yes of course! The purchase price would be $150,000

I plan on using FHA or conventional financing through a small local bank, the Property is currently being remodeled and should be rent ready

I’ve accounted

8% - repairs and maintenance

8% - Vacancy

9% - capital expenditures

10% - management fees

I think this might be a little much for expenses but I want to run the numbers conservatively.

Also the tenant or tenants would be responsible for their own utilities.

Although I do plan on house hacking   

 Thank you Joshua for the advice and encouraging words, I will definitely make him a counter offer.

@Joe Villeneuve

Thank you for your wisdom Joe

@Joe Villeneuve

Yeah sorry, what I meant is how do I know what is too much to pay for a property when there are no accurate comps to compare to?