EDIT: Located in (California). Forgot to mention it in title.
TL;DR: The owner of the 4 unit apartments we live in wants to sell to us for 750K. We think we can make it happen. Where should we start?
A few months back, my wife and I expressed interest in buying the 4 plex that we currently live in. In June, the owner reached out to us to let us know that he is now interested in selling. He asked if we we would be ok with doing an Off Market deal. We are 100% down, but we don't know where to start. this is our first time ever buying a home and we want to make sure we cover all our bases.
Owner wants to sell at 750k. Comps have sold in the last 6-12mo for 590's to low 700's. Most of them were partially or fully updated with parking and/or garages. We know it's not worth asking because here, there is only street parking, we're next to auto shop that's somewhat loud and uses most of the street parking in the area, the building has not been updated since built in 1935, plus some other minor issues.
It has (2) 2 bed/1 ba and (2) 1 bed/1 ba. that are all currently occupied, but we feel all of the units are paying less than market value for rent. A lot of homes in this area are being bought, remodeled, and sold and we feel this is a great opportunity to get in the market.
I make 65k a year. Wife is in school not bringing in income. Current Monthly expenses are approx $2800 Total Debt: approx 18k which can be paid off for a better loan, if need be. My dad is willing to gift me the down payment, which we are estimating will need to be about 25%.
So, here are our questions: *Should we get a realtor to help us negotiate? *Is an owner/occupied rental worth it? *Should we buy with the expectation to sell in 5-10 years, or is a 4plex better to hold onto for long term? *How do we find the best loan options? *What are some good resources to learn about real estate investing? *Basically, what should our next steps be?
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