Lack Of Duplexes

[Jack Hamm]

Hello BP, I am currently looking at markets that I may want to work and live in once I graduate college but I find that in every market that I look into there is only 1 or 2 duplexes in the area. I would consider renting by the room but since I have a girlfriend and we plan on living together right out of school I think that is out of the question. What can I do to find more small multifamily properties or will more properties become available as rates drop and more people are looking to sell their properties? Thank you.

[Matthew Porcaro]

Couple of options here: 

1. You can use software like propstream or something similar to pull lists of all 2-4 unit properties in your target areas. Then, you can go the off-market route, and contact the owners directly via direct mail, door knocking, or cold calling the owners and asking them if they'd have any interest in selling. 

2. Depending on your market, look at their ADU laws. Accessory dwelling units (ADUs) are becoming more and more popular nationwide. Most zoning for single family homes is now allowing you to add a separate accessory unit from the home, whether it be in different space in the house, garage, small unit outside, or in the basement where applicable. You can get another income producing area of the house and it still be separate.

3. Look for single family homes that are built well for adding accessory apartments. Properties with basements with outside entrances to the basement with egress windows (you can add these too), split level homes (very popular here in NY) where you can make an apartment upstairs and downstairs. Or, look for properties that are considered "mother daughter" properties or properties with "Mother in law" suites.