My wife and I bought a slightly rundown duplex almost 2 years ago as owner occupants and have now fixed up both sides as they became available. We have effectively raised the rent of the side that we don't live in by over $225/month and plan to raise the side we live in by $250/month since it has direct garage access. After we end up moving out, we will be netting almost $700/month. We are getting ready to position ourselves to buy another property and are wondering if we should wait a little longer to try to buy a larger multi-unit property or try to buy multiple duplexes in the next year?
congrats Mitchell. sounds like you have the duplex adding value strategy down pat.... On the growth of your operation...Probably much depends on your circumstances and lifestyle..of course, you get economy of scale with multiple units in one structure (one mortgage, one insurance bill, tax bill, one roof, one lawn, one parking lot/driveway, etc), so a fourplex gives you even more scale than the duplex (or your question may even be about 5 plus units).. The owner occupant financing on four units or less is hard to beat, as you know. You could rinse and repeat with a duplex, triplex or fourplex...move in and do it again, and see if you lifestyle and day job fits even more additional units in a couple of more years (I am more a fan of work life balance than competing for the most doors, but to each his/her own). Best of luck