Hey, can someone please tell me what to analyze in buying a duplex/triplex/four-plex house? What are the risks? How to find tenants? How to calculate the profits? Thanks!
Cash flow is king, as well as the sort of rehab that the property needs/you're willing to do. Do you want turnkey or are you looking to BRRRR? As far as assessing the profits, there are ways to do that using online rent calculators and simple math once you know how you will be funding your investment.
Finding tenants can be handled by a PM if that's something that you're interested in. If not, there are dozens of sites and apps that you can list your property on and then screen for desirable candidates.
Hey, can someone please tell me what to analyze in buying a duplex/triplex/four-plex house? What are the risks? How to find tenants? How to calculate the profits? Thanks!
Not sure what else to say but its ALL about the numbers,
From an Insurance Standpoint, some things to look out for:
1. Has the property been certified "Lead Safe". Many Personal Insurance companies will require it on the multi-family properties
2. Age of systems (roof, electric, heat, plumbing). Most companies have guidelines on what they will accept in terms of age of the updtes. Also, most are looking for circuit breakers not fuses. Knob & Tube and Aluminum wires will cause almost all standard companies to decline a property.
3. Tenants with pets. Discuss the dogs that are a problem with the different Insurance companies that might quote. A dog like a Pitt bull or Rottweiler might exclude you from getting coverage from some companies
4. Conditions: Broken/cracked driveways or sidewalks, overhanging trees, stairs without railings, pealing roof shingles, rotted wood on trim, etc. all can be issues in an Insurance company inspection