All Forum Posts by: Jace Perez

Hey @Ricardo Baptista, welcome to BP! I think it's a great idea to buy a fourplex with an FHA loan, but when it comes to living in one of the units, you might want to keep your ownership a secret. You don't want your tenants showing up on your doorstep at 2 a.m. because their toilet is backed up. Good luck!

 @Jace Perez there’s always an exception to the rule but usually the great deals are found through networking and hustle. A decent deal might get listed with an agent that the owner knows. As to @Drew Sygit’s point if you don’t have a way of knowing your numbers or willing to spend $300 for something that will make you a better investor my advice would be you should not buy a rental property at a distance bc the chances are you will lose way more than that 

This is an average deal IMO. Things to consider are all of the reserves and vacancy that obviously you're not accounting for. Once you factor all of that in and the additional up front repairs I'm guessing this is about a 7-8% ROI. I don't get excited about that by any means but that's not uncommon for OOS investors. Other things that you can't tell from this is the area, are the current tenants willing to stay and are they still paying, what is the cost for rehab of other units, etc. Way to many unknowns to give a solid answer, but the fact that it's on redfin throws up MAJOR flags (that's typically where deals go to die). If it was a GOOD DEAL it would probably never make it to a site like that.

@Jace Perez why don't you put this all in one of the BiggerPockets Calculators?

I'm curious how you calculate everything what what numbers you used? I'm also learning how to analyze deals.

Plus, don't look for a GOOD deal as your first deal.

Look for a Safe deal.  Will make less, but you won't loose a lot more.

Safe deal examples:

a.  Needs clean up and landscaping.

b.  Needs new flooring or carpet replaced.

c.  Needs new shingles.

d.  Paint job on the outside.

Bad deal examples: as a first timer.

a.  Foundation repair

b.  Total kithchen/bathroom makeover.

c.  Moving walls

d.  Bad neighborhood

e.  Window/Door replacement

f.  Sewer not checked out.

If you do a Safe deal, even though it's not a great financial deal. You will have started. The majority of people who look at REI will never start.

All of us have to make our mistakes.  You want to keep them low dollar, so that don't take you out of the game on your first deal.

Start small and Make Your Big Mistakes Early.