Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Multi-Family and Apartment Investing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 8 years ago,

User Stats

3
Posts
0
Votes
Michael Williams
  • Investor
  • Nashville, TN
0
Votes |
3
Posts

NASHVILLE, TN - Multifamily - Duplex to Triplex!

Michael Williams
  • Investor
  • Nashville, TN
Posted

Background: Just bought my first investment property, a 3Br 2.5Ba (master downstairs) and am taking advantage of the "House Hacking" technique.  

Goal: To break into the real estate market by networking, finding good deals, and hard work!

Strategy: I am constantly looking for good deals for Single Family homes that I can rent out (but that's not why I'm starting this discussion).

Idea: So I'm just going map this idea out step by step and let you all have at it!

1) Find good deal on Duplex that can provide cash flow of 10-12% (rent = $600-$700 per residence) net at end of the month and put down 10% down payment ($20,000 on $200,000 property).

2) Research Parcel on Duplex to ensure an extra room/ residence can be built and will comply with local ordinance. Typical issues will be zoning, setbacks, and utility easements (I am civil engineer and work with this stuff everyday; this step is very important). SO BASCIALLY there must be room for a Duplex to become a Triplex!

3) Spend $25,000 building extra residence that can also be rented out between $600-$700.  

4) Have bank appraise rehab property and refinance to get back your $20,000 down payment (or more).

5) Buy and Hold: Earn Cash flow from net, equity, & Appreciation.

Mortgage and Expenses = $1500.00/mo

Rent= $600*3=$1800.00/mo ---------$300/$1500 = .2*.5 (50% rule) = 10% return

Equity= starts at $288/mo @ 4%

Let me know what you guys think!