All Forum Posts by: Michael Piccolo

The numbers seem great, are you going to manage yourself? Sounds like by the purchase price this is in a rough area? My concerns would be the overall management. If in a super rough part of town there will be a lot of headaches, such as collecting rents, keeping the property from bad damage from tenants...etc... 

Also, in your numbers have you allotted for insurance, garbage, any utility, lawn service, bug service, vacancy etc.? if so the cash flow you listed may be worth the risk! 

Update on our first property, so we picked the wrong PM! This person whom we thought was hungry and eager to take care of our property, failed to get it listed in any of the top websites (zillow etc) despite me calling and texting her daily to get it listed. She also failed to evict a tenant who hasn't paid in two months! despite all of these issues we thankfully bought the property at such a good rate of return we haven't lost a penny! We now have fired this PM and picked what we hope is a more reputable company to handle now filling 3/4 empty units! Lesson learned to pick your PM wisely and always buy a property that won't kill you financially when its not fully leased!

 Hi Adam, we purchased a 4plex current rents are $650. we have one vacancy walking into it. Purchase price was $234k, after expenses and vacancy we are looking to make around $850 a month. For a 17% cash on cash return. 

 Yes, we are using a Pm, we asked around, did research, and got some recommendation from our home inspector, however, when we flew down to look at a property that we ultimately didn't purchase, we met an agent who also did PM work. We liked her attitude, work ethic and so we ended up going with her. 

It took 3 months of searching around America, got an offer accepted 3 months ago and negotiated for seller to do some repairs, and we finally closed yesterday! Thanks to bigger pockets and the community I own a 4plex in Alabama! Wish me luck!

Thanks to everyone for advise and encouragement!

Thanks Dan B. for the quick reply. Sounds like I'm in a good spot then. Appreciate the help!

I'm in contract on a 4plex in Alabama. My lender is telling me 25% down is required for mulitfamily. In Brandon's webinar he always talks about 20% down. Is that not an option for a four plex? should I look for a new lender?  Anyone have a different experience with downpayment on four-plex or multifamily?

Thanks @blakejarrett! Im flying there to check it out this week. Wish me luck!

Thanks for the reply Frank! I didn't know that Boeing and the state is going to be investing more in the area which makes it seem stronger. I know what you mean in Houston, I have been working with a few agents there and its tough to find a 10%+ deal. I will definitely reach out to you if something great hits the radar!