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Updated over 5 years ago on . Most recent reply
Duplex- to change or not to
Hello BP, I'm looking at buying a duplex. The duplex is in need of updating and maintenance, but has tenants in place right now that are wanting to stay. With the rent they are paying right now the cash flow and ROI is great. So I could buy and change nothing, because the 2 tenants are happy with the way it is and have a great cash flow or I could buy and evict them, remodel and get even a little better cash flow. Not sure what to do.
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Originally posted by @David Napier:
Hello BP, I'm looking at buying a duplex. The duplex is in need of updating and maintenance, but has tenants in place right now that are wanting to stay. With the rent they are paying right now the cash flow and ROI is great. So I could buy and change nothing, because the 2 tenants are happy with the way it is and have a great cash flow or I could buy and evict them, remodel and get even a little better cash flow. Not sure what to do.
Turnover is the biggest cashflow killer in the rental business. You never want to create artificial turnover. Keep collecting rent until a natural turnover occurs. At that time renovate the unit and advertise it for market rent. Repeat the process for the duration of ownership.