All Forum Posts by: James Bradin

Thanks for posting the info. How were you able to secure it with only 14.7% down?

Unfortunately I do not have any hard money contacts in that area.  The only property I have in that area was purchased with a conventional loan.  I am sure you can probably find some in the area on here though.

I actually know that area pretty well.  It sounds like a very promising property.  It probably would not be hard at all securing a hard money lender in that area either if you are trying to keep it local.

Hey Joel welcome to BP.  I am a long distance military investor myself.  I currently have 6 units and am under contract on 2 more.  I self managed 5 of the units myself while deploying 4 times.  It is possible and this website as well as David Greene's book will help a great deal.  These steps will be covered in the book but until then it should help you out:

1) Determine your niche (what kind of properties/strategies).  In my opinion it is best to stick with one until you have it down pat.  I have only invested in small multi family properties (2-4 units).  Make realistic goals as to how much you want to spend and what you expect to make in cashflow/profit.

2) Determine a location.  I chose my hometown and the base I was going to be assigned to the longest.  They are both in the same state and where I ultimately plan to retire.  However you can choose to invest wherever you want.

3) Build your team.  Contact, interview, and vet an agent, a property manager, and a contractor.  It helps if they are investors themselves (but not necessary).  Talk to people on the forums that invest in the areas you are looking at.  They probably have recommendations.

4) Start looking for properties.  If you want to do it right, do not even start seriously considering properties until you have a team in place.

Good luck and welcome to BP.  I have been on here for around 5 years, and I can safely say that this website has changed my life and provided me with an education unlike any other.

I do not have any experience with flips or doing a BRRRR with any of my properties (yet). However based on the numbers (assuming your repair costs are accurate) this looks like a great BRRRR property. If I were pursuing this property I would secure it with Hard money and then rent it and refinance hopefully at the ARV or higher. That would significantly decrease the amount of money that you would need to spend. All of that depends on how accurate your estimated repair costs are.

St Pete is a pretty promising market.  Prior to COVID the town was attracting a lot of "young professionals" that could not afford the more expensive properties in Tampa.  They also have what I would describe as a "hipster" scene growing downtown.  I know a lot of younger people that have moved into several of the older neighborhoods in that area.  The prices are still pretty steep, but probably nothing to what you are seeing in CA.

I house hacked a duplex for 4 years, and am currently under contract on my second duplex that I intend to house hack for at least a year.  I'll provide my two cents:

I run all of my analysis as if the property were strictly an investment property, so run your numbers with the rent that you can expect right now.  I still try to stick to the 1% rule, and aim to cash flow at least $200 per door per month.  With the market as high as it is, this is getting more difficult (unless you find off market deals).  

With that in mind, right now is a great time to house hack.  I strive to purchase "recession proof" properties that have a rent between $900-$1400 a month (depends on your market).  Basically whatever "working class people" can afford right now, and what "young professionals" would want to rent should a recession happen.  It is always a great time to house hack.  Even if you knock off only a couple hundred dollars off your mortgage it will still most likely be less than you are currently paying for rent/mortgage right now by yourself.  I paid $200 a month in rent for 4 years, and this next duplex is going to cost me roughly the same, while most of my peers are paying $1500-$2000 a month in mortgage/rent.  You can do the math but it puts me well ahead of my colleagues and friends.  So even if your first deal is not a "home-run" it is hard to mess up house hacking.

There are a lot of tricks to analyze small multi-family units, and Brandon Turner has been hosting webinars pretty regularly on the process here on BP.  It is, in my opinion, the best way to get started in real estate investing.  It provides you the ability to save money quickly while learning the land lording process.  The BP book on Managing Rental Properties has basically served as my bible for the past few years, and I can promise that $20 book has paid for itself at least 1000 times over.

Let me know if you have any specific questions.

I just want to confirm that you are saying the right thing. Cash flow is the amount of money left over after all expenses (Mortgage, Taxes, Insurances, Utilities, Maintenance & CapEx Reserves) have all been subtracted out. Typically I try to shoot for at least $200 of cashflow per door per month (ie. $400 for a duplex, $800 for a quad). If your 5-plex is going to actually cash flow at $3700 a month that would probably be one of the best deals in recent years.

If that is your gross income for the property (as I am guessing that it is), it is probably not the greatest deal. With a $112,500 payment and a mortgage payment of roughly $2000 a month, $250 for insurance, $220 for taxes, $370 for Cap Ex, $296 for Maintenance.....and we are already at $3136. And that is without utilities, lawn care, property management, and vacancy. With those numbers your ROI will be pretty low. Just using the quick 1% rule you would want the gross rental income to be at least $4500 a month. With it being a 5-plex you cannot qualify for an FHA loan or any other type of loan that would allow you to decrease your down payment.

To answer your initial question, no it is not a bad time to purchase small multi family units. However I would say that your money could be spent better. That is a very significant down payment for a property that is not a "home run". I am under contract on a similarly priced duplex that I secured with a fraction of the down payment that you are preparing to drop. If I had that amount of investment capital I would look at 2-4 unit multi family units funded through an FHA loan (3.5% down instead of 25%)

Let me know if you have any specific questions.

Hey TJ welcome to BP.  House hacking is such a powerful way to start you real estate journey.  My fist house hacked allowed me to purchase a quadplex in Bradenton in 2017. I haven't been looking as much recently, but there have been some decent duplexes in the area in the past.  Unfortunately, the prices have continued to increase with the booming economy.  

If you have any specifics on house hacking, feel free to ask.  I did it for 4 years in New Mexico, and am about to start house hacking another duplex in Destin, FL next month.  I have seen most of the issues that come up.

If you are looking for a good agent that is also an investor, let me know.  I was very happy with the agent that I used on my quad plex purchase.

This is actually a pretty solid post and highlights some pretty common discrepancies from what I have seen on other forums in the past.  I am replying to this in the hopes that it gains some views, and potentially is addressed by the BP website team.