All Forum Posts by: Account Closed

Hey, thank you all. You've given me some good ideas. Negotiating terms before I close on the deal I think is the best for my situation. Thank you!

If I am wanting to buy a fourplex and live in one of the units, but they're all already leased out, what are my options?

I am looking at a duplex that is listed for $190,000 (see link below). One unit has 4 bedrooms, a living room, kitchen/dining room, laundry hookups and one bathroom, and the other has the same, save for only two bedrooms. The first unit is currently leased for one year for $850 a month. The second unit is unoccupied, but is listed to lease at $750 a month. That's a total of $1600 a month if I were to rent both units.

If I were to purchase at the $190,000 listing, and rented out both sides, I would have a negative cash flow of around $177 per month. With that, I am wanting to house hack, and occupy the other unit, so I would only have one side rented out.

In order to positively cash flow about $102 a month, I would need to purchase at $130,000, $90,000 less than their asking price. Biggerpocket's advice is to cashflow at least $100 per unit per month. I would fall about $100 short.

Even if I could get the purchase down to $130,000, is it still worth it? What other information should I be considering? This is my first purchase, and so my experience is low. 

https://navicamls.net/displays/?n=359&i=7623342&k=BI2N269XHVVO

Hey, are you doing anything like this soon? Or would you like to meet up some time?