4 Plex to 6 Plex?


#1

Hi,
Been a while, but this forum has meant everything to me in the past. No action, just thinking here. Bought C. Sheets program back in late 90s and used this forum to buy my first single family home shortly after with a 6k private loan @15% over 18 mo, with interest only pmts. Rented, refied, paid loan and held for 3 years. Sold it for $30k profit and bought a 4 Plex, used 1031 exchange. We have spent the last 10 yrs plus upgrading apts and recently painted the outside for a nice curb appeal. Rents were $425 (1700) currently total $2200 per month, though could get a bit more in this market. I see comps in the area for $230k-$300k. Current mortgage $160k plus $25k on LOC.
My wife would like to have rentals closer to home. Have lot next to house that we own. Thinking of putting up structure for 30-40k and renting for 600-650. Also looking at a nicely appointed 6 Plex in nearby town that is listed for $350k. With $75k down, mort pmt (P+I) would be about $1300k.
Feeling rusty and boning up on CREONLINE so need some thinking on this to help me decide on whether to just keep the 4 Plex, or sell and have some cash to look for further investments. I feel I have done well thus far without any of my own money. Now that I could have some cash to start out, I’d like to proceed cautiously, so I am open to thoughts and opinions, but not anxious to make any quick decisions. Thank you, Montanatude


#2

Keep in mind that 5-plex and up do not qualify for FNMA/Freddie Mac financing. So, financing is harder to get, since a 6 plex is not high enough in price for most commercial lenders to want to offer you a loan. If you can get seller financing it’s worth going for.


#3

4Plex, 6Plex

Mr. Bronchick,
Thank you for your response. I am aware of, though cautioned by your remarks. Thank you so much for responding. I will continue to read posts on the forum and post again when I am more clear.
Obliged,
Dennis


#4

Had great article you shared with us!! keep posting like this which peoples really like your ideas and thoughts…