All Forum Posts by: Tyler D.

I recently found some land for a great price in the best neighborhood in my city. After doing a bit of research it appears that I can build a home there for significantly less than it costs to buy an existing one. Interestingly, A duplex here would cost me around 350k all-in, which is less than it would cost to buy an already built one even in a rougher part of the city. Typical SFH goes for 350k city wide and 400-700k in this area. Duplexes are obviously more.

So this got me thinking, what would be the best type of property to build? It is a high class neighborhood, so maybe the best route would be to build single family and flip it. I'm a buy and hold investor at heart, so I'd prefer to build income property, however. What about building a duplex, a fourplex, two duplexes on the same lot, or townhomes? 

I'm looking primarily at maximizing rental income, and also having a strong exit strategy. If it's possible, having homes that I can sell off individually (IE, individual townhomes or half-duplexes) seems smart. However the cashflow from a fourplex could outweigh the benefit of the other options.

What are you thoughts?

Appreciate the info. Do you think it would be smarter to go with a 2/4Plex (if possible) or do a straight single family home? I drove the streets nearby and it is mostly SFH with a handful of multifamily.

Playing devils advocate here, my thoughts are that with a 2/4plex in a top neighborhood like this, it may be hard to find an exit strategy. The rents may not be enough for an investor to buy, and a homeowner wants their own huge home, not a 2/4plex. Where with a SFH there is obviously a market for that.

But I might just be overthinking it. I could likely just hold the MFH and get good cashflow from it.

Thanks, I will check that out. 

It does seem like an amazing value. I was wondering why they were on the market for so cheap. To be fair, the two houses on either side of the lots are HUGE 3k+ sqft houses, but even the 2k sqft houses on the same street are in the 400k range. I'm not too worried about the time, as I have a fairly big chunk of cash sitting around that I've been wanting to invest in something. If I can turn a good profit on this it would be a good place to put it.

I'm still debating on whether a duplex or SFH would be the right idea. I could obviously get more cashflow with a duplex, but as you said this might not be the right neighborhood for that, and maybe a build and flip (with a SFH) is the smarter way to go.

Depends. I'm primarily a buy and hold investor. That being said, if I could get a clearly better return by selling it and investing elsewhere I'd be open to it.

It seems like an obvious choice to build something there, as building would be considerably cheaper than buying, especially in that neighborhood. And I'd get a solid cashflow or resale value there. Just want to be sure that there isn't something I'm missing.

The town I live in has gotten quite expensive, with the average home price around $350k, and rents at around 1200. However, land is fairly cheap, and I found a pair of half-acre plots for 50k each. I'm thinking about building something on them and either holding or selling and wanted to see if anyone here can share their experience and insight.

The land is in a primo area, and the houses directly next to the plots are 600k and 750k respectively. I got a rough estimate from a home builder website and it was around 200k before electrical, plumbing, etc. for stick built. Modular is obviously cheaper. I could build a duplex or fourplex, which may be a smart idea cashflow-wise, but might hurt the resale value. Also the land is on a slope, but I imagine that wouldn't be too hard to level out and build the home(s) on.

Overall, does this sound like a smart situation to take advantage of? Would you build single family or multi? And would you buy (build) and hold or flip? Let me know your thoughts.

I'm building my real estate portfolio but have no traditional income. I will be getting a W2 job again in a few years, and wanted to know if I can carry over my unused deductions from previous years? Where can I find the specifics on what carries over and for how long it is eligible?

Thanks in advance.

I'm looking at picking up a property in Southern Oregon. Currently looking at Medford, Grants Pass, Reedsport and Klamath Falls.

Medford seems to be pretty weak on cashflow, where Klamath and Reedsport have some good opportunities.

What do you think are the best markets down here? 

I'm looking at picking up some property in my local town, which is a mid-sized town of about 80k people. The cashflow numbers here are not great, most properties do not break 1%. However population and job growth are both high and will likely continue.

Meanwhile, there is a smaller town a couple hours away of about 20k people with much better cashflow. The average home is about 50% of the price, but the rent is only about 20% lower. I can definitely get 1% on cheaper properties, however the population growth is considerably lower. 

I'm considering going for the smaller town, because the cashflow is much better and I don't think it's going anywhere. Just growing at a smaller rate. What are your thoughts?

Interesting, thanks for the info, Ron.

What's interesting to me is that it was sold fairly recently (2012) for more than it is selling for now, and only very recently foreclosed. That tells me that it probably has decent bones, but ultimately I will need to get in there and check for myself.

It does have hardwood floors, though they are damaged. I would definitely try to refinish them.

Seeing as the average SFH goes for 300k in this town, someone paying 400K+ for a rehabbed giant home is not outside the realm of possibility. There are a handful of homes on the market in my town of similar size for 600k+, though many of them are in better neighborhoods.