Duplex - is this a good deal?

11 Replies

Hey guys, I’m a Newby trying to start small in multi family. Does this look like a decent deal? https://www.zillow.com/homedetails/4804-Junius-St-Dallas-TX-75246/26679059_zpid/ I’m in Dallas TX so prices are high on everything. Thanks in advance! Dylan

@Dylan McCabe from Dallas TX, 

Great question, and if you were in my market, Los Angeles, and that property was for that price here, I would definitely not just say, yes, BUT HECK YESSSSS! 

Seriously, speaking though, I strongly recommend in speaking with a local Realtor. He or She, have local MLS access of all recent comparables (comps). And will inform you, if it's a great deal or not.

And from what I can see thru Zillow, the owner is representing himself and paying the agent the 3 percent commission. In other words, you are not paying any commission for the agent's services to you. But this is also a red flag, the homeowners usually use what Zillow evaluates their home's value, which in all my cases, it's priced at the very high - end. 

If, you need recommendations out there. I may have contacts. 

Anyhow, I hope this helps. 

-Rudy Vazquez

@Rudolph Vazquez thanks for the tips. Yes I’d like to connect with anyone you recommend. I’m just getting started as an investor so I’ve got tons of questions at this point. From what I keep hearing the Dallas TX market is very difficult for buyers right now.
Originally posted by @Dylan McCabe :
Hey guys,

I’m a Newby trying to start small in multi family. Does this look like a decent deal?

https://www.zillow.com/homedetails/4804-Junius-St-...

I’m in Dallas TX so prices are high on everything. Thanks in advance!

Dylan

What are your goals?  What are your numbers?  Will you live in it?  cash flow?  Price appreciation?

I will say that you more or less have to keep up with air B&B to keep that property cash flowing.

If you intended on living in it, I would say its probably a pretty decent start.

Be a little careful on that stretch, some of it is pretty good, some of it is a little sketchy.

Having owned a duplex pretty close to there, I would guess (without running the numbers), that the initial return would be just so/so.  It likely wouldn't cash flow, and I think rents are about as high as they will be in the near term.

@Dylan McCabe probably not an ideal investment if you intend on cash flowing and growing your wealth. If you want to pay for the premium price of living downtown and in that particular area - then sure, but as Bart mentioned... you're going to have a hard time cash flowing at all with that property. AirBnB is an option - but even then it will likely be minimal at most.

@Kenneth McKeown Thanks Kenneth. I see you are in Farmers Branch. I'm really looking for multifamily properties. Maybe 50 units, in need of some TLC. Let me know if you know of any! I will raise the money. I've learned a lot since this post and now have a spreadsheet from Michael Blank (multifamily investment podcast) that I'm using to analyze deals. I'm looking to find buy and hold properties.