Hey BP, I'm excited to announce that I recently purchased my first duplex! It's a 3/3 in the Milwaukee area, and I will be using it as a house hack. I was looking primarily on the MLS for about a year before I closed on the right deal. Shout out to @Marcus Auerbach for all of the help! The numbers are as follows:
Purchase Price: $174,000
Estimated Rehab: $15,000
Rent after repairs: $1,050/unit
Water & Sewer: $75
After the rehab, I should be able to knock off the PMI, so I would cash flow an extra $70. I won't be completely living for free, but I may end up getting a roommate or AirBnB the other bedrooms to cover all of the expenses. I'd love to hear what you guys think! Feel free to reach out if you have any questions.
Congrats Drew on the first duplex.
There is always so much to learn, which seems area specific. In my area, you don't get much bnb action unless you are super cheap or close to the city, which becomes real competitive with airport hotel/motel.
Congrats man!! I am looking to the same thing. How long do you anticipate the renovation to take?
@Michael Sato Thank you!
@Dennis L Lewis Jr Thanks Dennis! Once the tenants are out of the unit I'll be moving into, I'm estimating about 2-3 weeks. The rehab is all cosmetic work which I plan to do on nights/weekends. It could be done much quicker if I hire it out, but I'd like to learn more about the rehab process as well as save some money :)
@Drew Markert - What does the split of your duplex look like? Is one side a 2/2 and the other a 1/1? I'm not sure how hot the market in Milwaukee is, but personally, I think you can make a lot more money on AirBnb. Especially if you live there and don't mind doing the sheets.
However, it might be a good idea to test it out for a few months. Perhaps you find a long term roommate to live with you in the 2/2 and then AirBnb the 1/1? Or vice versa? I would suggest testing both out to see what you can get!
actually the most profitable way for you to do it (it sounds like you might be single) is to rent out half, and be a minimalist; keep most of your personal belongings in a storage facility (or locked in the basement if avaliable) and just "disappear" for a few days if an air BNB customer books.
@Craig Curelop both units are a 3/1. I haven't thought much about Airbnb for the complete other half, but I'm looking into this more - thank you for the insight!
@Joshua Martin thank you for the kind words! It's located near 92nd and Howard. Not sure if that's the greatest place for Airbnb (about 20 minutes to downtown & airport) but there's a few in the area. I'm definitely open to the idea of using the other unit as an Airbnb altogether - it should be quite simple to test and I could always go back to long term tenants if it doesn't work out. How has it been going with your fourplex? Do you have all of the other units on Airbnb?
Congratulations! Way to go! Let this be the first of many steps my friend. What ever your day job? You can to this in addtion to it. You have just lit the fuse for exciting path of ownership! Best of luck.
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