Hello all, I am about to close on my triplex that I want to get rid of due to issues like frequent turnover, repairs, and inadequate amount of meters (I paid for gas) etc. However, the property is paid off and will probably break even when sold. Some of you will say why sell it but, it seemed like there was an issue every month for the last several years.
anyways moving on!!!! starting new!
can anyone please help with several basic questions.
1. does it matter if I buy duplexes/quads or 5units/higher. Here are the scenarios. I may be able to put down payments on 3 duplexes (carry mortgage), pay off a quad, or lg downpayment on a 5unit or bigger (carry mortgage). some of the areas may not be a prime as my triplex but they should cash flow and probably make more than what my triplex gave me, of course I will be doing my due diligence and making sure these will be solid investments.
2. does it matter on the size of the rental? I have noticed with my other rentals that 2bd/1bth or bigger have more stable renters as opposed to 1/1 or studios. anyone have the same experience? I'm probably trying to stay away from mixes unless they are the bigger size rentals ie 2/1, 3/2, 2/2 etc.
3. with some of my research, some places pay for water, gas. I would like to avoid these type of places, but they also seem to have a cheaper selling price, and still looks like a good buy. Do you incorporate your costs by raising rents?
4. I also have noticed that some places give the amount of taxes they paid a certain year, but when I pay for the property, those taxes are going to be different and maybe higher. also, i think a lot of these places base their price on 'what they can get for rent in the future'. anyone have a strategy to try to offset the added fluff price.
I guess those are the pressing questions for now. but I would really appreciate if anyone can comment on them. I'm just undecided whether which i should buy or just hold and see if the market goes down, hate my money doing nothing.
I would say, don't buy multiple duplexes. Buy a quality duplex that has curb appeal so you don't have to deal with the turnover issues. My tenants pay for gas & electric. Unfortunately the house isn't sub metered, so eventually we will have to divide the water bill.
If you buy a duplex with tenants that haven't been paying for utilities and you decide to start charging, that could cause an immediate conflict. I much rather start fresh with new tenants than have to deal with this conflict.
It doesn't seem that what you're looking at is really different than what you want to get rid of.
I am already looking at duplexes, triplexes, and quads. I usually keep rents status quo to keep the peace, usually raise if there are new tenants moving in.
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