Investing single family or duplex?

Question

Hello,

Could anyone share their experience in investing in a new construction single family home or duplex at below cities as far CAP rate, cash flow, rental income etc:

1. Abilene, TX

2. Willis, TX

3. Conroe, TX

4. College Station, TX

or any other place I should be looking for a better ROI?

If you have a property in any of the cities, please advise the property management company you are using and how much fees are they charging monthly?

Thanks

Srikant

Gino Barbaro · Answer

@Srikant Puvvada

Here is his site

https://southernimpressionhomes.com/2024/02/16/build-to-rent...

Gregory Schwartz · Answer

My go-to metric is the "5-year annualized ROI" provided by the BP Calculators. This number accounts for the return if you sell in 5 years and allows me to compare various investment properties against each other on a long time horizon. This is important to me because I am a long-term buy-and-hold investor.

Andres Rodriguez · Answer

Thank you, Sir!

Gino Barbaro · Answer

@Andres Rodriguez

Here is his site

https://southernimpressionhomes.com/2024/02/16/build-to-rent...

Gino Barbaro · Answer

@Srikant Puvvada

I have a friend selling SFH and duplexes/quads in Jacksonville and Orlando Those are two other markets, as well as Knoxville TN.

Chris Grenzig · Answer

@Andres Rodriguez and @Srikant Puvvada Southern Impression Homes is a pretty reputable group from what I've heard, but I haven't interacted with them myself. I know they're selling some new construction quads in the Mandarin area which are in a pretty solid B/B+ area and I think they have some quads on the westside too, probably more like a C+ area but I haven't been past the property in 2+ years so it could've changed. We own some MF in the Riverside/Murray Hill area and we're selling a turnkey triplex right now in Murray Hill too which might be of interest. Let me know if there's anyway I can help, happy to do so if I can.

Andres Rodriguez · Answer

Hi @Gino BarbaroWould you be able to send me the details on those properties?

Srikant Puvvada · Answer

Thanks Gino.

Srikant Puvvada · Answer

Thanks David for your responses and sharing your valuable experiences.

David Schmiediche · Answer

As for your question "What metric do you use to determine which investments are good or bad?" It depends on the investor. All my investors have a different criteria. Once you analyze and view multiple properties in an area, you start to see what is typical and what you are looking for. Personally, I look for multifamily in a good area that will cashflow after renovating each unit. Talking with a realtor will help in narrowing down your personal criteria.

Investing single family or duplex?

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