Author Topic: Help Evaluating My Quadplex  (Read 3187 times)

Scortius

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Help Evaluating My Quadplex
« on: October 04, 2019, 10:04:38 PM »
Hi All, I'm in desperate need of a financial wellness checkup for my rental property. I bought this approximately 10 years ago and have been relatively hands-off with the help of a management company. Recent events have caused me to look more closely at the numbers as I think I need to decide to sell or hold. At the time I felt like the numbers made sense, but I could use the opinion of people who actually know what they're doing.

Quick summary, I bought a quadplex a while ago for $240k. 25% down, mortgage rate around 6.8% for a non-occupied property. I refinanced a few years later after the recession down to about 5.5%. PITI seems to come out to around $1450/mo. At the time the rents for the 4 units ranged from $500 to $550/mo. I was able to get those up to $600 and even one to $675 within a couple of years. Approximately 1% rule worthy, but not great. I tried managing it myself but a few seriously challenging tenants forced me to hire a management company at 10%. They were great in that they sorted out the legal crap very quickly and got things back on track.

A couple of years after we bought it we put in a good chunk of change (~$20k?) to fix it up a bit (and fix some necessary issues). This brought rents up to approximately $700 where they've stayed for a while now. It's in a decent neighborhood near a university. Our units are 2 bedroom and have a nice floor plan, which is a bit of an exception in the area. Right now comparable 1 bedrooms are going for $600/mo and 2 bedrooms are around $800/mo so I 'should' be able to get rents at that level moving forward (maybe even $850-$900 if we keep the units in good shape). In general things have been good but not great, average vacancies with a few issues (eviction or two) over the past 10 or so years.

Now I've run into a bit of a problem. Two units are empty and they're not filling. I walked through the units and they are in very bad shape. Need new floors  (was laminate hardwood) and potentially some other work (kitchen cabinets, leaky tub). The roof is leaking and my manager has quotes for $9k (or maybe $15k to fix a hidden structural issue and bring it up to code). My property manager is estimating $8k for each units' repair.

I'm pretty torn on a number of issues. I really do like the property and want to keep it if it makes sense. I have a majority of my investments in my 401k and like the slight diversification this property gives me. I don't need a great return, but I'd like to at least not lose money on it.

On the other hand, I'm not sure if I should keep it if I'm not able to give it the attention it needs. My property manager has a large portfolio and only pays attention if I bug her. She has staff for maintenance and upkeep. Lately I've been wondering if I should trust her as I fear she may be over-charging me for her estimates. She procured the 3 roofing quotes herself (though they seem reasonable). Her quotes of $8k per unit for renovations seem high, but I could just be paranoid. They do need a lot of work. We get monthly statements from the management team with itemized receipts for all work orders, so it's not like they're operating behind a veil. When I talk to her about the property it's clear she knows the business very well and I value that expertise.

At this point I don't even know what questions to ask. If, and if is an important word here, if I can get the rents up close to $900 in the next few years and keep it mostly occupied, I think that would be good enough? But that may be too optimistic? What if Ican only maintain $800 or even $700? I should probably try and refinance again... and I'm not quite sure what I could sell the place for, I'd guess a bit over $300k? I asked my manager what she thinks it would sell for but she didn't respond yet. It's not in her interest for me to sell so I think I should at least check in with some agents. And, even if I did want to sell, I'd need to fix the roof and repair the floors in the empty units.

So, can anyone help me make a decision? Or at least help me ask the right questions to get the numbers I need to make an informed choice? I'll try and answer any questions to the best of my ability!

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Re: Help Evaluating My Quadplex
« Reply #1 on: October 05, 2019, 03:20:52 AM »
Sounds like you have the wrong property manager.  Having "staff" to do repairs means you are likely being overcharged and/or you are not getting quality work.  Leaking roof?  Why were you not told about this problem when it started?  Multiple evictions means the manager is not screening tenants properly.  My guess is that when you complain about the cost of repairs, the manager will offer to buy the property at a lowball number to account for all the repairs.

At this point, the work will have to be done, whether you keep it or sell it.  My guess is you don't have the time or inclination to manage the property yourself.  In your shoes, I would shop for a property manager that will do the job correctly.  Once you have the property fixed up and it operates for a year or two at higher rents with better tenants, it might be time to sell.

LightStache

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Re: Help Evaluating My Quadplex
« Reply #2 on: October 05, 2019, 10:57:21 AM »
Sounds like you have the wrong property manager.  Having "staff" to do repairs means you are likely being overcharged and/or you are not getting quality work.  Leaking roof?  Why were you not told about this problem when it started?  Multiple evictions means the manager is not screening tenants properly.  My guess is that when you complain about the cost of repairs, the manager will offer to buy the property at a lowball number to account for all the repairs.

At this point, the work will have to be done, whether you keep it or sell it.  My guess is you don't have the time or inclination to manage the property yourself.  In your shoes, I would shop for a property manager that will do the job correctly.  Once you have the property fixed up and it operates for a year or two at higher rents with better tenants, it might be time to sell.

+1 Assuming you're local, I think you should take back over the property management and set an exit plan. This sounds like a Class C/D property and that you didn't expect the amount of work required for a property of that type. If you can exit with a decent IRR, then it could be both a successful investment and a lesson learned. To support a strong sale you will need to get everything fixed up and rented out for a couple years. Hopefully setting a plan in place will ease your mind dealing with the rehab and tenants.

waltworks

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Re: Help Evaluating My Quadplex
« Reply #3 on: October 05, 2019, 04:17:43 PM »
This is an object lesson on the 50% rule. You are in the red at this point, right? That's why low end rental property investors generally go for 2%, not 1% rule. Expenses are higher because of turnover/poor tenants/damage.

If it was me I'd dump it now.

-W

cchrissyy

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Re: Help Evaluating My Quadplex
« Reply #4 on: October 05, 2019, 05:44:16 PM »
I think the property manager totally failed you by not knowing about, and handling, the repairs for however long until now when you find 2 units in "very bad shape". That's a big deal! they should have seen the issues when they were still small.

It's tie to stop trusting those people for everything. Not the repairs, finding tenants, or to advice about rent vs sell.

It sounds like you don't have the time or desire to manage it yourself and steer it out of the messy situation, even if the $ looked worthwhile on paper. So I think, skip ahead to selling.

Xlar

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Re: Help Evaluating My Quadplex
« Reply #5 on: October 07, 2019, 08:38:34 AM »
...

A couple of years after we bought it we put in a good chunk of change (~$20k?) to fix it up a bit (and fix some necessary issues). This brought rents up to approximately $700 where they've stayed for a while now. It's in a decent neighborhood near a university. Our units are 2 bedroom and have a nice floor plan, which is a bit of an exception in the area. Right now comparable 1 bedrooms are going for $600/mo and 2 bedrooms are around $800/mo so I 'should' be able to get rents at that level moving forward (maybe even $850-$900 if we keep the units in good shape). In general things have been good but not great, average vacancies with a few issues (eviction or two) over the past 10 or so years.

So your renting out a property for $700 when you should be able to get $850-900 if they're in "good shape"? You knew that the property was in bad shape and were okay with that? Are you running a slum?

Now I've run into a bit of a problem. Two units are empty and they're not filling. I walked through the units and they are in very bad shape. Need new floors  (was laminate hardwood) and potentially some other work (kitchen cabinets, leaky tub). The roof is leaking and my manager has quotes for $9k (or maybe $15k to fix a hidden structural issue and bring it up to code). My property manager is estimating $8k for each units' repair.

So you have some significant repairs to make. Have you intentionally put off this work? Or did the property manager fail to notify you about just how bad things had gotten?

If you've been renting out damaged units at a high discount no wonder you've been experiencing so many evictions! No quality tenant is going to be willing to rent such a place.

What math did you run when you bought the place? Most guides I see recommend at least 1% of the purchase price in maintenance and 1% of the purchase price in Cap Ex every year for a SFH. I think you need much more for apartments.

NorCal

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Re: Help Evaluating My Quadplex
« Reply #6 on: October 07, 2019, 12:08:37 PM »
First, take my advice with a grain of salt, as I'm not currently a RE investor.  I'm considering it though.

1. I think you need to do the work to fix up those units and get tenants in them.  Any new investor coming in will expect a hefty discount for having to do that work for you.
2. As a landlord you should be on the property with the PM roughly once a year (or when properties turn over) to decide on repairs/maintenance/upgrades.  The house you live in needs work every so often, and so do the units you rent.
3. Decide on whether the property manager is worth keeping or not.  Maybe they got the idea that you just don't want to be bothered with the property so they didn't call you, even when they should have. 
4. Check to see if any of the other units need comparable work.
5. Make the buy/keep decision after the units have been fixed up and rented out for a few months.  This is to make sure you have the mental space to make the decision, as well as a way to maximize your value on sale.

Papa bear

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Re: Help Evaluating My Quadplex
« Reply #7 on: October 07, 2019, 12:57:46 PM »
I think you fix up the place, rent it out at 900/unit and then sell it to the next guy.  List it at 380 or so. Hope someone picks it up. Get your money back out of it.


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rothwem

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Re: Help Evaluating My Quadplex
« Reply #8 on: October 08, 2019, 07:49:18 AM »
Maybe I'm loony, but what I see when I look at your property is a $295k rental property (including the repairs) that can be rented out for $900/per unit, which is a 14.6% annual return on a cash purchase of the property.  Add in 10% property management costs and 1%/year in maintenance (may be a bit conservative for the first couple years if you just renovated it), and you still get a 12% return. Those seem like good numbers, I don't think you should ditch it.   

Fire your property manager, find your own contractors, fix the place and get it rented at market value with tenants that aren't deadbeats.

I think the problem is that you've been viewing this investment as a 100% passive one, and landlording isn't a passive investment.  If you decide to ditch it because you want your investments to be more passive, I'd still get it fixed up and rented to decent tenants before selling. 

waltworks

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Re: Help Evaluating My Quadplex
« Reply #9 on: October 08, 2019, 08:18:36 AM »
Maybe I'm loony, but what I see when I look at your property is a $295k rental property (including the repairs) that can be rented out for $900/per unit, which is a 14.6% annual return on a cash purchase of the property.  Add in 10% property management costs and 1%/year in maintenance (may be a bit conservative for the first couple years if you just renovated it), and you still get a 12% return. Those seem like good numbers, I don't think you should ditch it.   

LOL. Someone isn't familiar with multiunit costs and overhead...let alone forgetting completely about taxes and insurance (which, of course, can be quite high for this kind of place).

Maybe you should buy it from the OP!

-W

rothwem

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Re: Help Evaluating My Quadplex
« Reply #10 on: October 08, 2019, 09:06:08 AM »
Maybe I'm loony, but what I see when I look at your property is a $295k rental property (including the repairs) that can be rented out for $900/per unit, which is a 14.6% annual return on a cash purchase of the property.  Add in 10% property management costs and 1%/year in maintenance (may be a bit conservative for the first couple years if you just renovated it), and you still get a 12% return. Those seem like good numbers, I don't think you should ditch it.   

LOL. Someone isn't familiar with multiunit costs and overhead...let alone forgetting completely about taxes and insurance (which, of course, can be quite high for this kind of place).

Maybe you should buy it from the OP!

-W

Okay, backing out the taxes and insurance from the PITI puts the PI at about 1000/month, and the TI at ~$450/month for an approximate $5400/year tax and insurance bill.  So if we ignore the PI part of the equation, we're still looking at a 10% return on a cash investment. 

Also, this is a leveraged investment, so the cash on cash return is even better.  The OP paid $60k of downpayment, and another $20k of work along the way.  I'm proposing that they drop another $55k, which makes for $135k of investment for an annual cash on cash return of 13.7%. 

I own a duplex already, so I do know a little bit about owning a multifamily.  If this place was local, I would be looking at this place HARD as a 295k as a turn key quad that can get generate $3600/month of revenue. 

Feel free to correct my math, I may have missed a piece of the puzzle.  What I don't want to hear is the tired "my time is worth $700/hour, so you're going to lose money if you think about this at all" type of line. 
« Last Edit: October 08, 2019, 09:08:06 AM by rothwem »

waltworks

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Re: Help Evaluating My Quadplex
« Reply #11 on: October 08, 2019, 12:02:56 PM »
Vacancy 10-15% - it's a semi-dump, there will be lots of unexpected turnover. Maintenance for this place (including maintaining the grounds) I'd guess at $10k/year but without seeing it it's hard to know. 1% is a bad joke - that'll cover plowing and grass cutting and general yardwork, maybe (again, though, maybe there's no yard). You're providing appliances to bad tenants usually for a cheap apartment, remember.

Keep in mind that you might also have a *really* bad tenant and get sued/have someone burn the place down.

-W

rothwem

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Re: Help Evaluating My Quadplex
« Reply #12 on: October 08, 2019, 01:57:14 PM »
Vacancy 10-15% - it's a semi-dump, there will be lots of unexpected turnover. Maintenance for this place (including maintaining the grounds) I'd guess at $10k/year but without seeing it it's hard to know. 1% is a bad joke - that'll cover plowing and grass cutting and general yardwork, maybe (again, though, maybe there's no yard). You're providing appliances to bad tenants usually for a cheap apartment, remember.

Keep in mind that you might also have a *really* bad tenant and get sued/have someone burn the place down.

-W

I feel silly arguing over a random piece of rental property that I've never seen before, but with that said, I just disagree. 



Vacancy is a management problem, and I've not seen many quads with expansive yards that incur large mowing bills.  I'm in the south so I don't deal with plowing.  I also made the maintenance number small because it assumes that the OP just dropped $55k renovating the place. I would hope you could get by with $3k/year after that for at least a while after the large renovation cost.  As for it being a "dump"...that's something that can be fixed. 

Anyways, my main point is that the numbers that the OP have mentioned are still pretty solid, despite the issues on the surface.  And if he intends on selling the place, he ought to fix it up anyways before making the decision to ditch it, since a 3600/month rental with a $295k buy-in is a pretty good deal. 

waltworks

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Re: Help Evaluating My Quadplex
« Reply #13 on: October 08, 2019, 05:15:22 PM »
The "old" rule of thumb for multifamily was 2% rule, because multifamily just is a much bigger PITA and costs more to run. Obviously that's just a guideline and maybe this place has no snow and no landscaping whatsoever and a metal roof that will last 100 years. Or not. But I wouldn't rush out to buy it, and the OP has done quite poorly with it, especially as compared to lots of other potential investments.

So yeah, we'll just have to agree to disagree.

-W

nancyfrank232

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Help Evaluating My Quadplex
« Reply #14 on: October 08, 2019, 06:31:20 PM »
The "old" rule of thumb for multifamily was 2% rule, because multifamily just is a much bigger PITA and costs more to run.

2% Rule?

If I looked at a 24 unit multifamily apartment that generates $24,000 in rent per month, it should be bought for $1.2m?

With due respect, this seems unlikely. How many multifamily apartments have you bought that followed this rule?

Multifamily is a PITA and costs more to run?

All due respect, if it adheres to this “2% rule” it would easily cover costs and be simple to run
« Last Edit: October 08, 2019, 06:36:05 PM by nancyfrank232 »

waltworks

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Re: Help Evaluating My Quadplex
« Reply #15 on: October 08, 2019, 07:45:28 PM »
The "old" rule of thumb for multifamily was 2% rule, because multifamily just is a much bigger PITA and costs more to run.

2% Rule?

If I looked at a 24 unit multifamily apartment that rents for $1000 per month per door, it should sell for $1.2m?

With due respect, this seems unlikely. How many multifamily apartments have you bought that followed this rule?

Multifamily is a PITA to run compared to what? A SFR?

Yes, multifamily is a pain. There are a bunch of reasons:
-Tends to attract lower quality tenants (as per the OP)
-Can fall under city/state restrictions (rent control, etc) that SFHs do not
-Tenants often do not get along with each other/management is more time consuming.
-Problems (mold, vermin) can quickly spread from one unit to all the rest.
-Code inspections are common and updates to/replacements of various systems (ie fire suppression) can suddenly be required. Tenants will call code violations in on you themselves if unhappy with something.
-Commercial loan required to finance in most cases, so no cheap gov't money.
-Much less appreciation compared to SFHs in the same area in most cases. 
-Often taxed at higher rates (sometimes much higher) than SFHs.
-Often require some/all utilities to be provided by the landlord (newer buildings tend to have separate meters for every unit but there are still a ton out there that don't).

Now, not all of those things apply to every property, of course, and the 1%/2% rules are not really "rules" as we've discussed here many times. You can find great investments that don't meet those rules, and you can find terrible ones that do.

I would not buy OP's property for $300k, personally. For the reasons OP has already mentioned - it's been a financial albatross.

-W

Papa bear

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Re: Help Evaluating My Quadplex
« Reply #16 on: October 08, 2019, 08:54:22 PM »
The "old" rule of thumb for multifamily was 2% rule, because multifamily just is a much bigger PITA and costs more to run.

2% Rule?

If I looked at a 24 unit multifamily apartment that generates $24,000 in rent per month, it should be bought for $1.2m?

With due respect, this seems unlikely. How many multifamily apartments have you bought that followed this rule?

Multifamily is a PITA and costs more to run?

All due respect, if it adheres to this “2% rule” it would easily cover costs and be simple to run

The 2% rule was (and still kind of is) the standard rule for multifamily properties. Typically 4+ units. 

It’s only the last 4-5 years where things have been inflated.


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Papa bear

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Re: Help Evaluating My Quadplex
« Reply #17 on: October 08, 2019, 09:04:34 PM »
I didn’t want to get into deep on this, seemed like things were pretty straight forward.  The OP isn’t losing their ass, but they didn’t hit a home run here.

A 10% cash on cash return isn’t very good when you’re looking at a place that you don’t expect much price inflation.  Realistically, the only market value increases will be due to rents.  Nothing wrong with that, but I look at 20-25% cash on cash for 4+.  You know the only value of that asset is as a business asset.  It’s only worth a multiple of the rents. And that multiple should be lower due to being a less than desirable location. So you better be getting a FAT return. 

If OP can get rents to 900/unit with another 25-30k in capital improvements, they’re not doing too bad.  But they would probably do a lot better if they listed this place at 380k.  There’s a lot of dumb money chasing yield and OP probably could get price. 

So, looking at it that way, OP could have 300k into the place, and sell for 380. 80k gain plus all the past rents and this place was a pretty good money maker.  I would 1031 this into another property to keep deferring taxes, hopefully into a place where they could repeat a 30-50% monthly rent increase with some capital expenditures.  And then look at a new PM that spends more time on maintenance. 




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rothwem

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Re: Help Evaluating My Quadplex
« Reply #18 on: October 09, 2019, 06:14:25 AM »
I would 1031 this into another property to keep deferring taxes, hopefully into a place where they could repeat a 30-50% monthly rent increase with some capital expenditures.  And then look at a new PM that spends more time on maintenance. 

Where is he going to find something like that in this current economy?  I don't think the OP will do much better than what he has right now. 

nancyfrank232

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Help Evaluating My Quadplex
« Reply #19 on: October 09, 2019, 09:25:49 AM »
The 2% rule was (and still kind of is) the standard rule for multifamily properties. Typically 4+ units. 

Out of curiosity how many 4+ MF properties have you purchased that adhered to the 2% rule?
« Last Edit: October 09, 2019, 09:28:18 AM by nancyfrank232 »

nancyfrank232

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Re: Help Evaluating My Quadplex
« Reply #20 on: October 09, 2019, 09:27:55 AM »
Yes, multifamily is a pain. There are a bunch of reasons:
...

Out of curiosity how many MF properties have you purchased that adhered to the 2% rule?

Papa bear

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Re: Help Evaluating My Quadplex
« Reply #21 on: October 09, 2019, 10:26:33 AM »
The 2% rule was (and still kind of is) the standard rule for multifamily properties. Typically 4+ units. 

Out of curiosity how many 4+ MF properties have you purchased that adhered to the 2% rule?

I don’t buy 4+ units. But some of my 2 units get damn close after capital improvements. Buy a place for 90, put in 30k, rent at 2200. Most recently (purchase in last 12 months) I’m looking at 1.5% on properties.  130k, 100k capital improvements, rent at 3600. I might be able to squeeze 3800 out of it, but I’m already near top market. 

If I was looking at larger multi units, find stuff at the 30-40k / unit price, that, after repair if 10-15k/ unit will get 900-1000/month rent. I’m on a bunch of searches on 4+ units, but need a break from major rehabs right now. I know they’re out there, I’ve got friends buying them, rehabbing, and then selling them back to the people chasing yield.

I fully admit that it is more difficult to find these properties anymore, especially the last 18 months. Like I said, there’s a lot of dumb money chasing yield.  I really should sell some of my bigger appreciated places (at about 1.8% rent to cost, but market value dictates this place to sell at around .8% rent to market value) in one market and buy 2 or 3 places in the other market I’m in.  Numbers tell me that it makes more sense, but I’m not having problems with tenants, I don’t have deferred maintenance, or any vacancy issues, I enjoy managing, and I like having the diversity of 2 metro markets. 








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waltworks

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Re: Help Evaluating My Quadplex
« Reply #22 on: October 09, 2019, 10:33:49 AM »
Yes, multifamily is a pain. There are a bunch of reasons:
...

Out of curiosity how many MF properties have you purchased that adhered to the 2% rule?

LOL. I don't even own any rental property anymore because prices went crazy. But back in the 90s, or more recently from 2009-2012 or so you couldn't throw a rock without hitting a 2% rule property in many places.

-W

nancyfrank232

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Help Evaluating My Quadplex
« Reply #23 on: October 09, 2019, 10:39:21 AM »
Yes, multifamily is a pain. There are a bunch of reasons:
...

Out of curiosity how many MF properties have you purchased that adhered to the 2% rule?

LOL. I don't even own any rental property anymore because prices went crazy. But back in the 90s, or more recently from 2009-2012 or so you couldn't throw a rock without hitting a 2% rule property in many places.

-W

How many 2% rule MF properties did you buy at those bargain prices?

OP should recognize that properties adhering to the 2% rule were found allegedly during a once-in-century Great Recession and by a poster who no longer owns any rental property
« Last Edit: October 09, 2019, 10:44:49 AM by nancyfrank232 »

waltworks

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Re: Help Evaluating My Quadplex
« Reply #24 on: October 09, 2019, 10:45:57 AM »
I personally didn't buy any. I did SFHs because I wasn't interested in multifamily (and wasn't ready to qualify for the commercial loans required).

Remember, for many years before the great recession there were also lots of these deals. I didn't say it was once in a lifetime - that's you putting words in my mouth.

Current RE prices are VERY high. They are not historically normal. That's not to say I'm predicting a crash, but you should recognize that the reason people think the 1% rule is a mythical unicorn is just that there's a massive bubble in all investments right now.

-W

Papa bear

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Re: Help Evaluating My Quadplex
« Reply #25 on: October 09, 2019, 10:53:23 AM »
Yes, multifamily is a pain. There are a bunch of reasons:
...

Out of curiosity how many MF properties have you purchased that adhered to the 2% rule?

LOL. I don't even own any rental property anymore because prices went crazy. But back in the 90s, or more recently from 2009-2012 or so you couldn't throw a rock without hitting a 2% rule property in many places.

-W

How many 2% rule MF properties did you buy at those bargain prices?

OP should recognize that properties adhering to the 2% rule were found allegedly during a once-in-century Great Recession and by a poster who no longer owns any rental property
OP should also recognize waltworks as one of the more experienced real estate investors in the forum, typically with face punch worthy truths.

2% rule, or any “rule” is back of napkin math.  It was the starting point for valuing multi family property.  It was not some unicorn event, it’s existed through a lot of periods of time.  Today is the oddity. We can’t help dumb money inflating prices without a commensurate increase in rent prices. Take advantage of the dumb money and cash out. 


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Scortius

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Re: Help Evaluating My Quadplex
« Reply #26 on: October 10, 2019, 11:11:05 AM »
OK, wow, this is excellent. Thanks so much for all the responses. I'm sorry I haven't replied earlier... we had family in town and had a few other commitments that have monopolized my time.

Since my post I took another tour with my property manager. Not a whole lot new to report. I grilled her a bit more and came away at least more comfortable with her explanations. It doesn't excuse the current state of things, but I feel that we're in this situation more due to some bad luck and neglect more than overt graft.

One main problem is that we had a tenant break her lease who then sued for her deposit and fees in district court. The manager had to wait for the case to get thrown down to muni court before she could reclaim the unit and sue for unpaid rent. That seriously put us back, but is understandable. My main complaint is that the manager didn't talk to me about finding a way to work with the tenant who had informed us of her desire to get out of her lease. If we had let her leave contingent on finding another renter I would have been much happier.

One other nugget is that the property may be worth significantly less than I anticipated. My manager informed me of a quadplex foreclosure that is going on the market for low $200k. That may suggest a market value for our property more in the mid $200k's. I'm not sure if that changes the equation, or simply the need for me to bail and take the hit.

Moving forward we are going to fix the roof immediately, and look to fix up the two units and get them filled. Meanwhile I'm searching for some multi-unit agents in the area that can give me a better estimate for what they think we can get. Hopefully in the next few weeks we'll be able to get a better idea of 1) a potential selling price if we list it and 2) a better idea of what rent and type of tenant we can get for upgraded units.

SndcxxJ

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Re: Help Evaluating My Quadplex
« Reply #27 on: November 05, 2019, 09:47:59 PM »
If you are serious about real estate, (and you should be because you are already in it) then fix up the places however they need to be done to get the highest rent possible without going overboard on costs.  Don't settle for a discounted rental rate on your investment because you didn't fix something up.  Ultimately this is your asset and any smart improvements to the place will be a good move. 

As for some of the other topics in this thread, when is 4 units multifamily?  1-4 units are the same, 5+ units are when you lose the benefit of fanny Mae loans, etc. 
I'm not sure where everyone is from but there hasn't been a 2% deal in CA this century.  In the bay area we commonly work with .6%!  Money can still be made even in this market, but you have to be smart and work hard and not let your assets go to waste.