All Forum Posts by: Cameron Price

I'm still new on this forum and, by no means, a pro real estate investor, but I'm looking at a deal and want some input.

Located in a town near me in a good location. It was built in 1970. Says it normally stays fully occupied. 72 units. Mostly 2/1 units with some 3/2 and some 1/1 units. Rents seem low at average of just under $500/ month. (I had a 2 bedroom 1 bath HOUSE that i rented for $700/ month is much less desireable of an area close by)

Definately needs updating. I'm guessing rents are low because the owner would rather accept lower rents than fix up the property. 

Gross rents of $418K/ year. 

Expenses $174K/ year (not including debt service)

Cap rate over 9% 

Cash on cash return of over 13% by the realtors calculations

Seems like an interesting opportunity to me, but I'm here to learn from those wiser than me. 

What's it look like from the data given? What other data fo you need to get a reasonable idea?

I cant stop thinking how much value could be added by doing an overall upgrade to the exterior and then updating each unit as it become vacant. Then raising rents $100/ unit throughout.

Man, that turned out really nice! What color is that? And what shingles did you go with?

 Thanks. How do you know the good mortgage lenders? Ask a realtor? 

If it does, then my idea would work with a triplex. There are a lot of dulexes in my area and some triplexes. The quads are few and far between. 

I do see groups of duplexes a lot here though. Wonder if that counts as well. 2 duplexes = a quadplex? 

So an ADU legaly counts as a unit?

Regardig creativity and living beneath my means: I started a landscaping business with very little money after the growing season was almost over ... not sure if creative or dumb, but it worked out :)

So I'd have to check local laws then? Who do you check with on that sort of question? Planning and Zoning? Housing Authority?

I'm looking into buying a quadplex to owner occupy. I've been reading about FHA loans and owner occupancy requirements on here.

I'm a fan of tiny homes. I currently live in 280 sf and have almost zero expenses as far as primary residence is concerned. 

I've done some research on Accessory Dwelling Units as well. 

How does that work in a quadplex? If i purchased a quadplex and had an ADU on the property that I ACTUALLY live in, am I within the law? I have a very sensitive consience, so I'm trying to figure out what constitutes legal occupancy.

Does an ADU count as an addiional unit, making it a multifamily? Or am i within the law and could rent all 4 units and occupy the ADU?

Awesome. Thanks man!

What specifically do you look for? Sinking pillars? Cracks in the wall?How do you know, besides an inspector teling you, thst you have foundation issues, before you buy?

Thanks for sharing. I've done 1 intense flip, and I definately found a lot of unknowns...

One of the few thigs that really scares me is foundation issues. What was wrong with yours?