All Forum Posts by: Cody Brinkman

I'm a big proponent of duplex investing (in my area). As I'm sure you've read here on Bigger Pockets every market is different. In my area there are a ton of duplex's and as a result of the large number of duplex's in my market, it is my opinion that the tenants view their half of the house more like a home. This has resulted (either in theory, or luck...) in better tenant retention then in triplex's and quad plex's. Brett had a good point about spreading out the risk, but as Jon illustrates not every market is the same. The best thing you can do is do your own research and try to find a mentor that works in the same area you are investing in.

Good Luck Alan!

Thanks guys, you all have valid points.

With the 2 properties combined I'm sitting around 33% after some conservative cap ex, maintenance and vacancy projections. I guess that makes it a pretty easy decision.

Thanks for the input! 

Hello BP,

I'm not brand new to Bigger Pockets, but have yet to ask for input from anybody so I figured I'd jump into the community and see varying opinions about deployment of capital.

I just closed on my 2nd Duplex last Tuesday and I'm torn about paying off the remainder of my student loan (roughly 28,000 @ 7 percent, monthly debt service being 475) or moving forward with either another duplex or a 4 plex in the Lincoln area.

I had a discussion with my banker today and he said with my current debt to income I should have no problem qualifying for another investment property, but looking down the road he told me that my debt to income ratio will eventually disqualify me for conventional financing. I have enough to pull the trigger on both another property and student loan debt elimination but that would leave my reserves lower then I like to keep them.

Any input from the community would be greatly appreciated.

Regards,

Cody Brinkman

Hey Jared. I'm also new to Bigger pockets. I recently purchased my first duplex and I'm by no means a seasoned investor but I may be able to point you in the right direction. You're right about the numbers looking good on paper, those utilities are pretty steep though and I imagine the winters are pretty brutal there. In regards to you tenant situation should you choose to buy the property the fact that their on a month to month agreement isn't such a bad thing. My property came with tenants on one side and they are terrible. You would have an opportunity to qualify your own tenants. If you should go that route I'd also move into the currently occupied unit and rent out the larger unit. That should completely cover your mortgage and give you a little extra to start doing those repairs you spoke of. As for your structural concerns Erin is right. Definitely get a pro's opinion before you put a penny down.

Hope this helps point you in the right direction