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Updated almost 4 years ago on . Most recent reply
![Jorge Hernandez's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/1285998/1621510990-avatar-jahernandez.jpg?twic=v1/output=image/crop=298x298@0x15/cover=128x128&v=2)
Duplex Dilemma to overpay or not to overpay?
Dear Bigger Pockets.
Im a W-2 employee two years out of college living in the Midwest. This year I was finally ready to beat analysis paralysis and start investing. However I’m at a dilemma.
1. I will be house hacking (I close next week) a SFH (B-) with a personal loan , and moving in two years. 10% Down
2. Just got in contract for a duplex (B-) under my LLC with 20% Down , property is ~140k after repairs. (Meets 1% rule)
An opportunity presented to possibly buy a side by side duplex in a B+ neighborhood in a nearby town
Price is 220k , but would need most likely a 240k-250k offer to be competitive. This property would not give me the 1% rule, but it would be an appreciation play. Both sides can be rented for $1800 per month and would cash flow $400 after management fees. My fear with this crazy market is overpaying for a property this much.
Also I would want to buy it under my LLC but paying 20% down would deplete my savings , so I'd have to buy it on the personal side with 10% so that I can retain some cash.
What you keep looking ?
Do you prefer cheaper properties that appreciate less but do meet the 1% ?
Thanks
Most Popular Reply
![Matt Leber's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/437664/1667794248-avatar-mattl38.jpg?twic=v1/output=image/crop=1536x1536@0x192/cover=128x128&v=2)
@Jorge Hernandez I would not recommend overpaying or depleting your savings for a purchase that is an appreciation play. I say go for the property that has better cash flow numbers and fits more comfortably in your savings. Any appreciation from there is icing on the cake.