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Updated about 5 years ago,
REI In Texas- comparing properties
I'm analyzing deals and looking for some input from other investors: In a scenario where you are comparing 2 duplexes in different areas which would you prefer to purchase and why? I have several things I am considering but I want to get some outside perspective on things I may not be thinking about when comparing these. I am looking for if you were comparing these two what would make you lean one way or the other- ex. how much does the good vs not-so great school zone affect you when looking for quality tenants, vacancy rates, CapEx on a 2000 build vs 2017, etc. Also thinking of if we do have a dip in housing prices how would that most likely affect each considering the quality and price point of each. Any advice is greatly appreciated!
-1st duplex asking price is $210,000, 2bed/2ba each and was built in 2000. Could use some updating cosmetically. In an OK area and pretty safe but the schools are rated between 2-3 on great schools. Each side is currently rented for $825 with current tenants in place, however, a duplex on the same street that is the same age and similar cosmetically rented for $950 recently. The taxes are higher in this area and it is closer to the city center- taxes are $4900 per year. This is in an area with mostly duplexes and apartments.
-2nd duplex asking price is $329,000. 3bed/2ba each and was built in 2017. Doesn't really need any work or updating to be rent ready and has tenants in currently. Each side is currently rented for $1425. This is more in the rural area but still has walmart/grocery stores etc. nearby and taxes are lower so taxes are very close to the same as the other at $5050. Schools are rated a 5-9 on great schools. In an area with some duplexes and lots of SFH. Thank you!