What are the risks of investing in a non conforming duplex and how like are they to happen
Not sure. I have a non-conforming Home in Longview WA. One of the last alley houses. In fact I call it my BOGO deal because we bought 2 of them side by side. Separate lots. Both houses literally touch the alley property line. You can hear the gravel churn while in your living room with each passing car. City has a code that if utilities are not on for a 12 month period they will never be able to be turned back on. in other words no occupancy for 12 months means it is no longer eligible to be occupied again. Both were in the worst condition imaginable.
Because of these issues, we picked up both houses for the price of one. Flipped the worst one to pay for both. Then took the best one and fixed it up real nice and it now rents for 1,100/month. with about 20K into it. next we financed out to pull out 75K! (appraised at just over 100K)
took that and bought another, refinanced out of that one too.
Not sure how you would measure that in terms of risk but it was enough to convince me to wipe out my 401K (pay taxes on it) and get it into more low end rentals.
Hope you have similar results,
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you