New to real estate investing. Interested in duplex real estate

9 Replies

@Michael Lafears

It can be a good idea.

Do you have any experience with Airbnb? If not you may want to start with Airbnb arbitrage and go find a place that will allow you to rent there place and to go ahead and list it on Airbnb. The benefit of that is that you can generally start with under $10k and the down side is limited.

I personally separate my rentals from my Airbnb because I buy in places that will make sense long term to a family and I create a cash flow almost passive income, on the other side I go to an area of town like near a hospital, college, downtown ETC... and rent there which in most cases will be CHEAPER then owning, I will not get the appreciation and some other RE benefits but Airbnb is not about that it's about cash flow and hopefully I buy right my long term rentals.

Mixing 2 of them in the same dwelling can create tax problems because Airbnb is taxed as an self employment income, and the rental is not, so talking to a CPA can help and a good one will give you a free 1st meeting.

I hope I did not confuse you, check out "Airbnb automated" on YouTube for more info on Airbnb arbitrage.

@Meir Greenblatt

Thank you for the advice and insight. The feedback was quite valuable. Like I mentioned I'm brand new to learning real estate and right now I'm seeking my niche approach. I currently invest in REITs and considering looking to the Hapoy Nest app that invest in real estate as low as $10. It works like Acorns. Heard of it?

@Michael Lafears Sounds like you are on the right track. I am new to posting on the board as wel. Currently have a couple duplexes in my market that hit the 1% rule, fully rented, and clean (but not super updated) props. College town as well.. University of Illinois. Airbnb probably not the best for this location

Originally posted by @Michael Lafears :

@Meir Greenblatt

Thank you for the advice and insight. The feedback was quite valuable. Like I mentioned I'm brand new to learning real estate and right now I'm seeking my niche approach. I currently invest in REITs and considering looking to the Hapoy Nest app that invest in real estate as low as $10. It works like Acorns. Heard of it?

 I heard of Acorns,  it can be great, but you most check out to see if there are any fee's.

I'm also new and don't have my niche yet,  but I started with a small condo and Airbnb.

@Michael Lafears

In general I don't recommend condo because if you get less then 2% you most likely will not cash flow, HOA's can limit your options, and tenants don't stay for more than 2-3 years.

But I got my place before I started learning about REI.

I actually just got 10 minutes ago an offer to buy 2 Condos with a 5 year above market rent lease, so I may buy it if I can get it below market value.

so your not planning on living in it at all? In that case be ready to have a 20-25% down payment and 2 months of reserves as well as 6 months of mortgage payments in the bank ( they will verify ) after all that is said and done with make sure the numbers make sense. are you investing for cash flow? or appreciation ? how long do you plan to hold? what is your goal? ask you self these questions, it will give you more clarity