Investor · Austin, TX · Member since 2013 · 443 posts · 174 votes
Have you guys ever ran into a situation where you find a neighborhood that is made up of 30 quadplexes on one street? The quadplexes are all owned by different owners so the properties have varying degrees of maintenance. There is always 1-2 poor condition properties that drag down rents for everyone else.
Is it just me or do these areas always turn into slums? Why do cities allow this type of zoning? You would think they would have some type of requirement that the properties need to have one owner or a mandatory HOA. Either that or make sure zoning has single family houses interspersed throughout. Any of you have experience owning these types of houses?
Interesting insight. I have a fourplex on one of these fourplex/duplex streets, and I think you are on track in that they are products of the density zoning in some areas. I would call it solid working class, however, in my area, but you do get an issue or two with the bad apple in the bunch.
On the location and concentration, that is probably more a quarrel with the local planing commission on whether they should have single family interspersed--and probably the single family buyers/builders would not want to be next to a rental... So the downside there.. On the HOA,, it may be like herding independent minded feral cats (think telling a bunch of do it yourself landlords how to keep their lawns)...
The fourplex or quad is a hybrid in a way--not full fledged commercial apartments but not single family housing. And you get the residential financing...I would guess that put them together to avoid single family conflict and meet a demand for housing (keep in mind that street could have 120 units (30 x 4= 120 units, with 2-3 per unit, you house alot of people and don't need the large commercial project, and all the financing, parking, and infrastructure that goes with it)....
On the bright side, think about some of the rinse and repeat strategies to buy one, build equity and buy another.. You may be able to buy several and literally improve the neighborhood. There could be tremendous opportunity (to increase rents and property value) if you are that one "owner" and you probably could do some major improvements just buying 2, 3, or 4 together, creating a quiet, well kept, good tenant end of the street (paint all yours the same color and build appropriate fencing, etc)...
Interesting insight. I have a fourplex on one of these fourplex/duplex streets, and I think you are on track in that they are products of the density zoning in some areas. I would call it solid working class, however, in my area, but you do get an issue or two with the bad apple in the bunch.
On the location and concentration, that is probably more a quarrel with the local planing commission on whether they should have single family interspersed--and probably the single family buyers/builders would not want to be next to a rental... So the downside there.. On the HOA,, it may be like herding independent minded feral cats (think telling a bunch of do it yourself landlords how to keep their lawns)...
The fourplex or quad is a hybrid in a way--not full fledged commercial apartments but not single family housing. And you get the residential financing...I would guess that put them together to avoid single family conflict and meet a demand for housing (keep in mind that street could have 120 units (30 x 4= 120 units, with 2-3 per unit, you house alot of people and don't need the large commercial project, and all the financing, parking, and infrastructure that goes with it)....
On the bright side, think about some of the rinse and repeat strategies to buy one, build equity and buy another.. You may be able to buy several and literally improve the neighborhood. There could be tremendous opportunity (to increase rents and property value) if you are that one "owner" and you probably could do some major improvements just buying 2, 3, or 4 together, creating a quiet, well kept, good tenant end of the street (paint all yours the same color and build appropriate fencing, etc)...
@Michael Boyer So have things went well with your property? I just see the contingency that I will be able to buy a bunch of the other houses on the same street as a big if.
hi Joseph, the appreciation has been very strong based on my purchase price and current comps that have sold, or that I have seen on the market since I bought. Plus, rents have really skipped upwards, too.. Pm me for actual numbers and even links if you like.
You are right, though, you are seldom going to find a quad in an ideal, dream home, stepford wives type subdivision of white picket fences and Norman Rockwell charm...
The quad on quad street is no one's dream home, but if you have a good product at the right price, you may get dozens of calls ( I have logged a hundred in the peak season) for that clean but affordable humdrum unit on quad street. Better yet, people aren't going to expect hgtv luxury inside either, just clean and functional rental condition for the area.
So while it may not make the better homes and gardens cover, the quad can be a landlord's dream... Frankly, the really pretty stuff seldom cash flows on the buy and hold in my opinion.. Larry Loftis on duplex, triplex and quads (see book of that title) runs the numbers and scenarios well..
In short, that ugly duckling quad block may have some swans on it if you put on your landlord shaded glasses, the ones that see past the mattresses mayhem out front and that look at cash flow, economy of scale, ease of management, great financing (for four unit or less), cost per unit, etc..... In fact, with those landlord lenses, the beautiful single families often turn to frogs with one kiss of the cash flow analyzer..
Bets of luck ( and west lake looks tough in the playoffs)
What's the issue with the zoning? Sounds like it works well for those renting the homes. As far as the zoning from the city planning perspective.Quadplexes and duplexes are gradual transitions in density. As for HOAs, you're not going to see those in older, denser neighborhoods unless someone organized it, which for rental properties, isn't likely to happen. What are the issues? Junk vehicles, trash, parking on grass? Those things just need to be reported to code compliance.
@Kyle Kingma The problem is that for the people that fixed up their properties wont be able to get more rent. They are surrounded by boarded up and deteriorating other properties.