Duplex - is this a good deal?

Question

Kenneth McKeown · Answer

@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.

Dylan McCabe · Answer

@Kenneth McKeown Just researching multi-family options at this point. Not married to any of them. But I know I want to grow and scale long term. Just trying to take the right steps at first. Easy right?!

Tal Simpson · Answer

It worked the second time I tried it - probably user error on my part!

Kenneth McKeown · Answer

@Dylan McCabe woah you went from wanting to start small in MF to now wanting 50+ units? How do you plan to raise the funds, via syndication? Big dreams - keep at it!

Dylan McCabe · Answer

@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.

Bart H. · Answer

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 · Answer

@Tal Simpson I just tried the link and it worked fine....

Rudy Vazquez · Answer

@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

Duplex - is this a good deal?

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