Quote · BiggerPockets Real Estate Podcast
I Bought 15 Rental Units While Making $15/Hour Putting Up Fences
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Deal #2: The FHA Fourplex — $245K for $7K Down
At 21:54 · chapter starts 20:50
With Hank Ballinger's framework in mind, Britton began hunting for fourplexes in Richmond, Kentucky, where most sell between $350,000 and $400,000. He spotted this one on Zillow — priced at $245,000 and sitting unsold for six months — because the previous owner had left two units in terrible shape, including a hole cut in the ceiling to investigate a toilet leak that was never repaired. That cosmetic disaster repelled other buyers but not Britton, who saw the underlying structure: new roof, new HVACs, and rent potential his mentor confirmed was strong. An FHA loan put him in the door for about $7,000 out of pocket (3.5% down), requiring him to live in one unit for a year. After LVP flooring, wall removal, and fresh fixtures, three units went to Section 8 at $900 each and the one-bedroom rented for $850. Total rents: $3,450/month. A second appraiser later valued the property at $322,000, confirming real equity [1] — Britton Eads "FHA fourplex with 3.5% down (~$7,000): Britton purchased a $245,000 fourplex using an FHA loan, requiring only about $7,000 out of pocket w…" 08:32 .
While touring a triplex, Britton noticed the identical building next door had 7 mailboxes. One quick call confirmed the neighbor owned it too — and was willing to sell both. What started as a $185K listing became a $265K portfolio buy covering 7 units.
