Duplex fall this year or Quadplex in spring 2026... and then ?

Duplex fall this year or Quadplex in spring 2026... and then ?

Gainesville, FL · Member since 2024 · 3 posts · 3 votes

I am currently renting at 40% below market rate rent and will be putting 5% down. With my low rent when I calculate the numbers for a duplex I would pay the same I pay in rent while I live there. I don't really want to tread water, or worse go backwards. (I'd still be putting aside the 15% as if it were fully rented because of Murphy's law)
I'd have to live there a year, then move (another duplex?) so I could make $400. I calculate that a quadplex would make my effective rent $350 below what I'm paying in rent today and when its fully rented it would bring in $700.

It takes longer to get the quad but it has a positive effect on my saving rate versus treading water in the duplex which requires me to move to "make" money. The money I pay in rent for the extra time is offset as soon as I am in the quadplex for 16 months. 

I also know that a duplex, while slower, is the safer, more conservative approach and on my single income.

Either way, for the second property, said another way its like small steps every 16 months or bigger steps at 32 months based on my current saving rate. I know I should be focusing on the first property but the analytic side of me wants to plan out two or three house hacks here and then move, in six years to a duplex hack in six years, in Asheville NC. 

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  • Rental Property Investor · Chicago, IL · Member since 2014 · 28 posts · 22 votes
    2y

    The current place you're renting is 40% below market, but will that be the case for the next 32 months? Your landlord could increase your rate at the next renewal, or your landlord could sell and the new landlord could renew at the market rate.

    The sooner you begin house hacking the sooner you'll find out if real estate is the path for you. In addition, you'll have 16 months of land-lording experience as opposed to none if you wait 32 months.

  • Ryan ThomsonBusiness Member
    Real Estate Agent · Colorado Springs, CO · Member since 2018 · 1k+ posts · 1k+ votes
    2y

    @John Morris it's great that you are thinking ahead and planning how to scale now. 

    Getting to a spot where you can afford more house is best done by buying a starter house/house hack today. Here is a metaphor. The train is going in the direction you want. You are chasing after it. When you get to the rear car do you keep running so you can try to get to the front car? No. You jump on and walk your way up. Buying a house is like jumping on the rear car and walking to the front. 

    I have a really good "scaling" video that I share with my house hacking clients in Colorado Springs. I will dm you that video. 

    The Assumable Guy544 Reviews
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