Does anyone invest in Duplexes?
Thinking of buying a duplex somewhere and rent out both sides while I live somewhere else.
Does anyone have experience with this? I assume lots of you guys want to own real estate at some point.
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I don't own one but would like to as a first time RE investment within the next few years. Probably won't have enough capital to purchase without some favorable owner-occupied financing and living in one of the units for a year or whatever the requirement is. Interesting in hearing others experience.
I invest in primarily duplexes and triplexes. Number 1 advice is know your market and product
Nice, do you hire a property manager or manage it yourself. This is going to be my first investment property so I'm kind of nervous, but excited.
Ah I see your question now. It's my family's business and my dad is a GC so he'll give a first shot at managing/repairing things. If he can't do it, then we got a handy man who has general knowledge of plumbing, HVAC, electrical and we also have a team of subs we can call upon (actual electrician, plumber, HVAC guy) if things are really serious. So I guess to answer your question, we manage our properties in house, but since this is more of a side gig for you, i think the most affordable/convenient strategy is to find a handyman (try looking into Task Rabbit). It's not worth hiring a property management company imo. They charge you 5-10% just to collect rent and field tenant phones calls..but with only a couple properties this really isn't that time consuming. Then their handyman charges you by the hour on top of the 5-10%. The annoying part is when minor shit needs to get fixed like a clogged toilet and this is where a handyman/task rabbit could be handy. For major issues like the hot water tank dying, you would hire an actual plumber
What are the expense ratios you experience on duplexes? I get that this is different in each market and to each firm’s management style. But curious how you run it and what the ratio is on an asset this small.
Anything up to a 4plex can make for a good first investment as they'll qualify for a residential mortgage, especially if you'll owner occupy one of the units for the first year or two. You should make sure you've got room in the deal and that you have some padding - you're eschewing one of the major benefits of multifamily, which is that with a 150 unit apartment, individual move-in's/move-out's won't make or break an asset. With a 2-4 plex, one net loss in unit occupancy can take you from doing well to underwater.
Not sure where you are located, but I do recommend that you get very familiar with your local leasing laws and you get selective on who you lease to. A bad tenant can make you wish you invested in LUNA instead.
You are far better off buying one and living in half of it. This will likely lead to negative cash flow but the reduced downpayment will make it worth it. 3.5% - 10% beats 25% - 30% all day everyday.
Many people think about investing in duplexes to be the best option for new investors to start in the real estate market. If nothing else, the advantages of duplex investment far exceed the disadvantages, particularly in terms of potential income flow vs the amount of risk an investor may be willing to take on in a promising purchase. However, every investment comes with some level of risk. To implement a duplex investing strategy successfully, investors must conduct due diligence and discover properties that fit their specific requirements.
Ask away, I own 15 units right now out of state. I'm in CA and my units are all in the midwest.
Should be closing on a 22 unit this coming week (fingers crossed)
How’d you get started?
I've done a few deal diaries if you look at some of my old posts. When this 22 unit closes, I'll do another one.
TLDR - saved up $50k and went in on a single family with one of my friends. slowly snowballed from there.
How did you go ahead and source opportunities? Is there a listing site you used to look remotely or was it through brokers in those local markets?
Anything on Loopnet is trash/overpriced right now. Used to be good.
I have good relationships with brokers and they know I can close. 2/3 of my buildings were pocket listings/direct to seller.
Nice, I'll check out your previous posts. Do you visit your properties a lot since they are far away or like just get a PM or local person to give you updates?
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