I have purchased a duplex and I am at a loss as to what to do now. I really don't have enough money to purchase a new property, and I'm not sure if I should put money into this one, or to save for the next one. Please help.
@Damien Stowers It really depends on your plans with the current duplex. Are you able to rent out the duplex now without repairs for a good amount? If so, there is your answer. If not, I would do the repairs to get it renting or flip it depending on what price you bought it for. The smart decision is the with the long haul in mind and get a renter in there to pay off the note for you.
Congrats on you first property!
Your next steps depend on what your plans are for the duplex. For now, I'll assume its a buy & hold property.
In that case, I'd say:
- Get quotes from contractors to see what it will cost to get the units to move-in condition.
- Determine if you want to have a PM company manage the rental units or if you want to do it yourself then get your tenants in there.
- Develop a budget for the property, set $ aside for CapEx, PM (even if you don't use it now), maintenance, etc.
- Search through BP and find blogs, forums, podcasts on this topic and find out how you want to run your rental business.
- Read Brandon Turner's books on rental properties and property management.
Most, if not all, of these things should have been figured out prior to purchasing a property but its not time to panic, its time to act! I'm sure you'll be fine if you give priority to getting your situation under control. Might seem like a lot of work but you can reach out to contractors, PM, and use BP's resources to help answer some of your unanswered questions.
Best of luck to you!
I live in one side and have a tenet in the other. I currently have a property management company collecting the rent and dealing with the tenets.
I would consider refinancing and using the equity for your next property. I would also reconsider using a PM company. Its really a luxury to have that and for an owner occupant rental, I'm not sure if I would pay for rent collection. However, we all have different goals. If you like the convenience of not having to deal with tenants, feel the expense is worth it AND can still cash flow, then you've got a great situation.
Make sure your property is if good quality to rent for top dollar.
Save up for another down payment on another multifamily in the meantime.
This takes time.
Congratulations on your first purchase!
What did you decide to do next?
I am planning on hold the property and putting some "sweat equity" into it. I'm and going to use that diminished expense of house to save for the next property, which will more than likely be another multi family.
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