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Updated over 8 years ago,

User Stats

23
Posts
7
Votes
Adam Gott
  • Pocatello, ID
7
Votes |
23
Posts

What would you do? nicer for 9% ROI, or lesser for 11%?

Adam Gott
  • Pocatello, ID
Posted

I am looking for my second multi-family unit and have two that I am considering. A nicer brick duplex with two car garage that would give me about 9% ROI or an older wood frame triplex that would give me 11% ROI.

Other things worth noting:

1.  The triplex has a family living in one half of it that has been there for 5+ years and the property is currently 'under-rented' (i.e. I could probably get $100 more rent per month.  Addtionally it looks like they may have at least five kids.   There were two bunk bed sets crammed into one of the bedrooms and there was a baby crib in the master bedroom.  They said that they wanted to stay there forever because the rent was so low.

2.  The duplex has an older couple living in one side with four or five yorkshire terriers (!).  They also say that they want to live there until they die, which may not be that long (the man is in his 90s and on oxygen).  They have been in place for nine years.

3.  Both are probably type C to B- properties but the duplex is really in pretty good shape.  The duplex has newer vinyl windows.

Well i think I may have answered my own question by posting this but I wanted some other opinions. Go for the ROI or for less headaches and less money? I use a PM so it's not a lot of headaches for me personally.

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