All Forum Posts by: Chris Payne

Thanks everyone! All great points. This deal would cash flow well as either a duplex or 4plex, but as many of you mentioned, it's a huge insurance risk as an illegal 4plex. Getting it rezoned is really the only way to go and that's not guaranteed.

@Max T. Your comment about trying to evict is a real eye opener and great point. Thanks! This definitely convinces me not to go the illegal 4plex route. 

BTW, the seller accepted a full-price cash offer yesterday. On to the next one...

@James Miller Not a vet, but maybe I can partner with one. Thank you for the tip.

@Account Closed  This sounds great. What are your interest rates? How long do I have to payback the loan?

@Joseph Caracappa Thank you! I agree, sending all 156 saves me time and I still have some favorable alls. Besides, I can always filter down for round 2 if round 1 doesn't work.

@Adrien C. One area is extremely hot and the other is warming up. Should I have a general purchase price range in my head when I start receiving calls? Or should I say "I'll get back to you" and take time for due diligence? I'm asking because the seller's first question is probably going to be "How much?"

BTW, I found these properties in an area in which 1 in 4 is distressed. Should I just do a saturated direct mail campaign to all addresses in the area or spend the time researching only the distressed properties?

Hi BP Fam,

When contacting and mailing motivated/distressed sellers, I've read that you can incentivize them by offering "No closing costs" and "No realtor commissions." Sounds great, but how can you buy a house and avoid these costs? 

I see that this strategy is being used by @Chris Feltus: https://www.biggerpockets.com/renewsblog/2013/05/10/driving-for-dollars-tracking-owners/

Hi team, I'm hoping someone can help me out. If my questions have already been answered somewhere on BP, forgive me. 

I just started driving for dollars today. I identified 156 distressed properties in an old, but up-and-coming part of town. Should I just send out letters to all 156 properties or should I filter down further in some way (i.e. amount of equity; back taxes; absentee owner; etc)?

I'm trying to decide from a Return on Time/Investment standpoint.

Also, if I do multiple mailings, should each mailer be different (i.e. language, format)? If so, how?

Where can I find direct mail samples with the appropriate verbiage? 

Hi BP Fam,

I came across an interesting REO this week. It's a legally zoned duplex that has been (illegally) divided into 4 units. The property is huge, consisting of a 4/2 house in front + a 6/3 house in back. It's listed for $157,000 and needs a good amount of work. It also has at least 1 lien. I have several questions...

Should I evaluate this deal as a duplex or 4plex when putting together an offer?

Should I rent all 4 units or convert back and rent as a duplex?

How do I find comps for a property like this? It's unique in size and structure for the area.

How much time and money would it take to get this changed to a legal 4plex, if at all possible?

Thank you, @Troy Gravett. I'm mostly dealing with REOs. Can I still use these methods?

And thank you, @John Cohen. This makes a lot of sense. I'll start building my network and asking around.

Hi BP Family!

I'd like to buy and hold a triplex or 4plex, but I'm unsure how I'll pay for it. My limited income won't allow me to get a FHA or conventional loan. I do have some cash; about 20% to 40% of my target purchase price.

What financing options do you recommend I pursue to buy my first multifamily property?

Welcome, Sam! I'm a newbie as well and find BP to be an excellent source for information and advice.