All Forum Posts by: Jean-Marc L.

Not sure if anyone has mentioned this yet, but house hacking can be a phenomenal way to get started if you don't mind having neighbors. Buy a multi-family (MF) property, live in one unit, and rent out the rest. Even if you're still paying for some of the expenses out of pocket, you've most likely drastically reduced your cost of living by eliminating most of if not all of your mortgage, property taxes, and/or insurance. On top of that, you're gaining valuable experience in property management which will be useful to you throughout the rest of your real estate investing (REI) journey. Hope this helps.

Hey Dustin, I am new as well and have 4 doors in Texas. Would be happy to share what I know and hopefully learn from you as well. I'll send you a colleague request! Thanks.

I own a quadplex in TX that I am looking to rehab, refinance, and hold as STRs. I have two of the four units currently running as STRs that narrowly cover the property's expenses on their own, but the other two units are vacant and in need of renovation. I am a recent medical school graduate and do not have the funds necessary to renovate the remaining two units. My credit score is poor because I paid for the renovation of the first two units with a personal credit card and have been very slowly paying it off. I found a lender willing to loan the money needed for the rehab, but I do not have the credit score that they require. I am looking for a credit guarantor for that loan OR an equity partner to finance the rehab in exchange for a revenue and/or equity share as negotiated.

Current cap rate with just two units rented is 3%. The estimated cap rate with three and four units functioning is about 9% and 14%, respectively. The estimated rehab / furnishing costs for the last two units are 15k and 40k (55k in total for both).  Additionally, the entire property is a fixer-upper and a value-add opportunity.

I purchased this property last year at 410k with a 0% down physician loan with the appraisal coming in at 425k. With an estimated 100-120k invested into remodeling all four units, the estimated ARV is 600k+. These remodeling costs include the price of opening the last two units as STRs.

Please reach out if interested, thank you!

Hey, everyone. My name is Jean-Marc. I'm a newish investor and bought my first property (quadplex) in Galveston about one year ago. I'm a resident physician and love REI about as much as treating patients. I'm looking to make new connections with other investors and learn as much as possible. I absorb as much REI content that I can find online and want to expand my horizons with others' experiences.

More on my first investment, this quadplex is a fixer-upper and has the potential to add 200k+ in equity with about half as much invested. With four operational STRs running out of it, the estimated cap rate will be 15-17%. Unfortunately, residency doesn't pay much! I also don't qualify for any institutional loans at this point. If anyone has any suggestions pertaining funding the rest of this project I would be very grateful. Thanks all!

I do not have a recent appraisal, but I estimate it is around 450-470k now. There is around 405k left on the note. 

Hello! I purchased my first property (quadplex) about one year ago for $410k with the intent to convert at least two units into STRs and either leave the other two as LTRs or convert those to STRs as well. I have since converted two units into airbnbs, which have left me at approximately a 3.7% cap rate with the other two units presently vacant. The other two units are vacant because they need renovation (and furnishing) prior to rental. One unit needs about 7k whereas the other needs approximately 30k. Projected cap rate would increase to around 14-17%. 

Further still, the house overall is a fixer-upper and could use 80-100k to modernize the amenities. These numbers include the estimates mentioned in the previous paragraph. If such an investment were made, the ARV is likely >$600k--although this has been difficult for me to estimate since TX is a non-disclosure state.

Ideally, I would pursue the larger 80-100k investment and cash-out refi afterwards along with enjoy the increased STR / LTR rental income. Yet, I am also open to the former option of just renovating two units for the 14-17% cap rate. Unfortunately, I am not currently financially capable of making these renovations and would like to explore options for acquiring this capital. I am interested in either private lending or partnering with a fellow RE investor. If anyone is interested or has other suggestions please DM me or comment. Thank you kindly!