All Forum Posts by: Matthew Cassidy

Hi Bigger Pockets Nation,

Need some help.

Seller is selling a 4 unit building (quadplex/Four Family), older guy been in the family for years and handed down in the family

Comps:

1. Same area 275K for a 4 unit building last year that needed new kitchens, bathrooms, new flooring, in unit laundry hookups. Already had central air 

2. Fully renovated 4 unit with all updates sold $400K a couple days ago

Details:

-He is back paying taxes on the property and set up on a payment plan with the city, he owes around 10K

-Had it under contract last year for $250,000, people came back at $180,000 called it a low ball offer

-Building went under contract for $230,000

-Bank will only fund $395,000 for construction and purchase price combined

-Major tuck pointing work, already cited by the city

-1 out of the 4 units are occupied

-All 3 units we saw need a full renovation 45K a unit (lots of sheets of drywall and joist work)

-New roof 15K, Tuck pointing 35K worth of work, add central air and furnaces 34K, Backyard is chewed up concrete...yes chewed up concrete that's about 2000 sqft (tripping hazard) and has a giant sycamore tree (8K to take down)

-About 300K in renovations

-We sent over the bids and walked through saying the bank can Only do $395,000...We can eat the backyard cost which is around 30K and purchase the property for $130,000

He basically told us no way told him give us a call if anything changes... and he re-listed the property instantly.

How would you go about handling the situation?  How can you influences someones decision that is emotionally invested?  Or what advice do you have on how to handle this situation?

Thanks y'all!

Matt Cassidy

@Clint Shelley so it's not paved yet we'll have to dig up that backyard and remove the fence and stone walkway. Any other tips you can think of?

Hey BP,

I'm in the process of acquiring a 6 unit complex in the midwest. The building sits behind an alley where it is common to add parking from the alley to the back.  There is a backyard to the property that we want to convert into a 6 lot parking lot. 

We would want to do asphalt, put post in, and stripe it. Does anyone have any experience on pricing? or can I dig the base level and have the asphalt guys do the top level?

Thanks BP!

Thanks @Michael K Gallagher!

I def want to go the least amount down route!  When you purchased your duplex did you do any renovation to the property too? If you did how did you do financing for the updates? Did you do a 203K or a separate contraction loan? 

Thanks!

Hey Bigger Pockets Nation,

I'm actively searching to buy a 4-family in the Dallas area

-I have about 30k-50k for a downpayment ready to go

-1st property

-looking at off market deals

-I would be living in one of the units (owner occupied)

-Updating the units: kitchen, bathrooms, and adding in unit laundry

-Would refinance after a year

For financing purposes should I go through a small bank or a loan officer? Should I just put 5% down or what would you recommend? Also for those that have done off market deals do you just bring a contract with you when you meet? Do you put anything special in the contract? OR what would you have done differently?

Thanks team!

*Posted this in another form too

Hey Bigger Pockets Nation,

I'm actively searching to buy a 4-family in the Dallas area

-I have about 30k-50k for a downpayment ready to go

-1st property

-looking at off market deals

-I would be living in one of the units (owner occupied)

-Updating the units: kitchen, bathrooms, and adding in unit laundry 

-Would refinance after a year

For financing purposes should I go through a small bank or a loan officer?  Should I just put 5% down or what would you recommend? Also for those that have done off market deals do you just bring a contract with you when you meet?  Do you put anything special in the contract? OR what would you have done differently? 

Thanks team!

Hey Andrew,

Something that everyone is getting and easy to use on your phone is Venmo or Cash (by square).  Super easy app and works with every bank. 

Chase quick pay is great, they are now https://www.zellepay.com/ and credit unions and other banks don't work as effectively as the two mentioned above.  If you have a couple doors Venmo and Cash are great but when you start getting bigger. Yardi might be the way to go.

Let me know if you have any other questions!

Keep crushing it!

@Honqing Yao, Matt is right if your ideal resident is college students you want your lease to start 8/1 and end 7/28 (not the 31st, just enough time to turn the unit for the next residents).   

Right now it's late in the game so holding out for top dollar rent isn't worth it.  Let's get that thing filled make ads starting next March, April, May and get a lease signed before they leave for the summer.  

Let me ask you, what are you using to market the place?  Are you on CLs or zillow?  What are your taglines? What are the pictures like?  Are they from a camera on your phone or do you have a friend that takes good photos (Like AirBnb photos)?  What are your tag lines?  

From my experience renting 3 beds this time of year (near washu in stl) if you are next to a college you can get 4 types of renters looking.

1) International students they sometimes wait last minute to book a place

2) Late acceptance students

3) Recent young professionals that live with parents and want to get out of the house

4) People wanting a 2 bed 2bath (not sure number of baths) with an office.  Doesn't always have to be a 3 bed ad.

It gets complicated when you rent it room by room

-College kids are picky (Might not like the roommate, roommates are messy in the common areas, etc) you don't want to have to manage how these people live

-I would stick to renting it as a three bed, look at other 3 bed ads on Zillow and CLs and price yours $50-$100 lower then just tell them it's  x amount of dollars for Water, Sewer, Trash a month $25 a person for water, sewer, trash a month ($75) bump in rent. 

Hope this gets rented soon!  Let me know if you have other questions, happy to help!