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Updated over 8 years ago on . Most recent reply

User Stats

41
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6
Votes
Gaston Barua
  • Investor
  • Palos Verdes Peninsula, CA
6
Votes |
41
Posts

DECISIONS DECISIONS! Which property to buy?

Gaston Barua
  • Investor
  • Palos Verdes Peninsula, CA
Posted

Hello All!

I am on the verge of making my first offer on a rental property, but need to decide between two great options. 

The First: Is a newly remodeled duplex walking distance from the college campus. It would produce about $593  in net monthly cash flow, I would not have to put too much work into it, and since it is walking distance from a University it would consistently remain rented (I see this as the safer option).

The Second: Is a fourplex which is currently 100% rented. Upon doing my analysis I could make about $2000 net monthly cash flow. However, I am not able to see the current state of the units, and being that it is a fourplex, I want to be careful to not bite off more than I can chew for my first investment. Then again, more risk more reward.

Would love to hear any input you guys might have here

Thanks!

GB

Most Popular Reply

User Stats

2,667
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1,760
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Deanna McCormick
  • Minneapolis, MN
1,760
Votes |
2,667
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Deanna McCormick
  • Minneapolis, MN
Replied

I really would like to say a duplex I would never be interested in I don't know why just is not worth my effort.

A 4 plex is basically a super start It probably still shares 1 boiler, 1 water heater and has 1 parking lot, 1 roof and 1 property tax cost and 1 insurance cost.. you split it by 4 and cost per unit is relatively manageable. and updates are easier to maneuver you pick and choose as someone moves out, 

Whats the cost per door. Est 233 ,, divide by 4 = about 58 each.. hard to compare the duplex you didn't include price,, so ya do the math but personally I put my efforts towards the 4 plex.

Honestly if the guy is 100% rented and his rents are close to market you can figure the interiors command that price and are probably pretty decent.

YOu can start this property and do very little until you have a vacancy, and then decide what you want to rehab, otherwise  your set, and can do some exterior, yard and common area fixes first which will attract and warrant rent increases to current units. Why's the guy selling?? how long has he had it??

I'd go after the 4 plex I bet chance of getting another duplex is around the corner, another 4 plex a lot farther down the road. 

Good luck 

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