All Forum Posts by: Charles Cho

Something close to this would be ideal for me except I would be very willing to up the amount of repairs needed for that forced equity.  I also heard, however, that an apartment with new appliances and cabinets rents for ~ the same as one with the newest appliance and upgraded cabinets; the only difference being the time that it take to get picked up by a renter.

http://duplexsandiego.com/san-diego-duplex-to-live...

I've heard a bit about high and low cap markets such as the comparison between San Diego and the South.  It is true that it is much easier to "force" equity in the San Diego area due it being a higher cap market?

Can you explain to me how and why a SFH is comparatively more expensive than a duplex? Let's just say:

4 br 2 bath; SFR 2,000 sq ft

2 br 1 bath; 2 1000 sq ft unit duplex 

You're saying that the single family residence in going to be more expensive and have less rent potential however it will have a better appreciate rate?

So are you saying that instead of basing your search on 2% returns, try to look for properties that will appreciate instead?  For your investments, what is the criteria that you use to estimate a good deal?  What do you think about investing in a low cost property in the South instead? 

For example:

$69,000 property with 4 units

Gross income at ~$1,400

30 year mortgage with 25% down ~$250

I'm trying to decide between quality and quantity.    

So between SFR and the duplex, which makes the most in rent comparative to square feet being occupied? Could you explain some of the factors involved in your specific decision to buy both properties? What connections did you make that proved the most useful in finding your properties?

Is it true that SFHs are more expensive comparatively per square foot to duplexes? I'm thinking about trying to utilize my FHA loan to the highest mortgage amount I am would be able to get approval for. Though I understand that SFHs are usually what many investors start out with, if I really want to use my FHA loan to it's highest potential, I would like to buy a duplex that I could sit on for a long time without having to deal with roommates throughout.

 I was looking at some short sales which force the owner to sell at such a price and also some foreclosures but I have heard that they are much more complex deals and not for beginners; is that true for both short sales and foreclosures?

So in your opinion, would flipping a SFR be a better deal than trying to buy a duplex and getting subsidized on rent?

 So you're saying that because the rate of appreciate is very high, the amount of rent is low comparative to the value of the home?  So if most of the deals are going to be in flips, would it be better to buy a single family home then renovate it?  Honestly I would rather buy a property with a low appreciation rate but a higher rent rate which ~means to me lower risk and steady income.  How does investing in better markets like Memphis and Atlanta and buying a $30,000 duplex sound?

Ideally I would love to get a fixer-upper duplex that I would be able to live in rent free while still keeping a full time job.  Are there any properties that are under 400K and that follow the 2% rule?