All Forum Posts by: David Edwards

I've been looking into maximizing performance and one scenario is the idea of building or acquiring a quadplex to take advantage of lower down payments / lower interest rates of a residential mortgage but then layering this with a max value rent by the room strategy.

In many places it seems you can have 6-8 unrelated individuals in a home.

Is anybody maximizing these joint strategies by building out a quadplex with 6-8 bedrooms per home and then renting out per room? this would get you to 24-32 tenants.

My thought would be to have each room with it's own bathroom, hire a cleaning service for common areas, and building out a shared deck for the four buildings and maybe a smaller building as a common area as well.

Any flaws to this idea, assuming numbers work out? Biggest headache I could see would be property management and finding a lot in an areas where room rentals are in demand.

@Kyle H. hey Kyle the prices you quoted above, does that include delivery and setup with the crane? Who laid the foundation and ran the utilities and managed all of the other ground prep? 

Also, more out of curiosity than anything else, how did the neighborhood react to the build? Any gawkers? :)

I've been looking at the Carolina's and Georgia, seems to be a very strong market.

@Amy Aziz That would be great, thank you.

Hello all,

Does anybody have a three option offer letter they would be willing to share? I promise not to plagiarize but rather looking for an example to structure my own around. I'll be making offers on vacant land or large acreage plots with a run down home that I will either tear down or rehab, subdivide, and sell off.

I looked in the files but didn't see anything there.

Thank you

Jetty.com says that they provide essentially insurance to cover security deposit applicable items and is paid for by the renter. Anybody have an experience?

Thanks!

Richard, as mentioned above I would absolutely recommend that your next purchase be a small multi-family property that you can househack. You are selling a Condo so you have to be used to being in close proximity to others.

If you buy the multi-family you will only have one set of closing costs vs. two closings if you buy another primary and a rental. Also, you can possibly qualify for a larger home as you can apply the projected rental income to your current income.

I would suggest getting yourself a quadplex but working down from there to smaller unit count properties if your market does not support. This is to give you the greatest coverage of your mortgage with rents all else being equal.

@Ryan Cleary

There are reports that modular construction, which is hardened in order to be transported survive the hurricanes there is Florida better than stick built.

If you private message me I am certain I could dig up the study, it was completed by FEMA if I recall properly. Or just Google for "modular homes" and "FEMA" and "Hurricanes" or something similar.

Basically, while not indestructible you should be better off than stick built all else being equal.

@Ryan Cleary

I am assuming this is the 1127 W 28th street in Florida.

If so, I am going to recommend you look at modular construction.

A quick google for  "west palm beach modular duplex" to find a modular builder that has Duplex plans leads to impresa modular.

The have both a single story and a two story design on their multifamily page. The single story will be cheaper as they shouldn't need a crane on site to install but requires a larger footprint to get the square footage, you should go with what works best. Heck.. if you have the room... put in two duplexes and make your place a 6 -plex assuming it's zoned, you will find the numbers become more favorable the more units you can get on the lot as the builders will discount and fixed costs get spread around.

A modular build is just a development process. Your duplex will appraise the same as any other stick built duplex, it'll insure the same, etc. it is NOT a mobile/manufactured home, but you're going to have your construction loan for a lot shorter period of time which means less interest you pay and the faster you get in a tenant and start that cash flow.

Importantly.. you should come in WAY below a $250 sqft price.. here in Houston I have a modular builder that starts at $88 sqft and with the improvements i am requesting just about hits $100.

@Eric Teran , @Kevin Wasserman

Thanks all for the feedback (@James Mc Ree, @Aaron Gordy, @Joe Scaparra, @Pat L., @Steven Foster Wilson). I fell into the trap of considering something I would think is cool in order to have something "different" while forgoing the fundamentals.

In reviewing my area I'll be wanting a 3/2 but a usable 3/2. Rents in the area for a 3/2 are 30% higher than a 2/2, there is a school a stones-throw away and the yards will be comparatively large in order to accommodate ordinances and the lot. As a result I'm really targeting families for these properties, ideally families that will stay a while. A plan I have for marketing (eventually, if there is a need) is to target renters at apartment complexes with kids via Facebook ads to highlight my homes build quality, large yards, and proximity to the schools.

I'm going to drop the master walk-in closets and put the space into the junior bedrooms so I can have junior rooms that are close to 10x10 which appears ideal for up to queen sized beds according to some googling.

Does this explanation as to why I am targeting usable 3/2 make sense? or are 2/2's really a big preference? I've noticed a lot of Duplexes around are 2/2's but they don't appraise nearly as high as the few 3/2's (which granted are generally newer but maybe that also signifies a shift in market preference) from what I can tell looking at comparables and one element of this strategy is to be sure I am building at 70-80% of expected appraisal so I can refi out as much as possible.

The point that Kitchens and Bath are the main sellers I can understand. We're going granite countertops, luxury vinyl flooring throughout, and stainless steel appliances as well as supplying Washer/Dryer and Fridge to set ourselves apart and command a higher rent as that's what my review of the area is showing. Those without the stainless steel appliances for an example seem to average $100 below those that do have it so we should capture a return monthly as well as hopefully renting faster. The countertops & flooring provide a more durable rental from what we understand as well as check some basic renter expectation boxes.

Name to ping: @Kevin Wasserman

I am looking at a few designs for this duplex layout. There are complex reasons but just understand that I am limited in footprint and cannot add more total square footage to the build.

My opinion is that the Master bedroom sells the place to tenents, after all those in the master are paying the bill, and that a trade off to have an excellent master but a smaller size for the secondary bedrooms is acceptable. Secondary rooms will be 9x9 while the master is 15x10 main room with an en-suite, a 5x5 walk in and something we added due to covid times a second walk in that is 5x7 and could function as an office nook for those that work from home.

There is no other good place for an office in the home plans.

This design gives the home a great (comparatively) Master.

Alternativly, we could drop this idea for the second walk in/office nook but then be able to increase the junior bedrooms to 10x9 a small increase to the footprint of those rooms.

The livingroom/kitchen/dining areas is 10x29 feet. We could keep the master as it is now, with the two walk in closets and instead trim 2 feet off the living area, but then things may be a bit tight when you figure in walk paths and furniture etc.

what makes the most sense? Will renters want the master bedroom with 2 awesome closets while one can be a nice private work space (personally I work from home so I like the idea but I really shouldn't design a place to niche) or it can be maintained as a large walk in close which gives the room an A class feel? Critically will they want it enough to forgo considerations/concerns about other room sizes?

Thank you for your feedback!