Buying a Duplex Property

5 Replies

I am looking into buying a duplex property in Sacramento region. I have seen few on the market that stay in market for a longtime or get back in market every few days. All these properties seems to have tenants as well so I am not sure why these properties stay in market for longtime.  In general what should be few points or notes I should look into while buying such property.  Is there any major difference while investing into single family vs duplex property? Please advise 

@Prachi Metha

Condition and price are two big factors. If you see properties going pending and then coming back on the market, ask the agent why and they will tell you what caused the transaction to fail. Sometimes it’s due to inspections and they will have a report you can see.  Tenants can be another problem. Find out if the current tenants are paying rent, how much they pay, if they pay on time, what leases are in place if any.

If you have a good agent, they should be helping you ask the right questions and making sure you find the answers.

@Prachi Metha Tenant occupied properties that are sitting on market tell me a few things:

1. The property may be overpriced.

2. The property may be in poor condition/unpermitted

3. Tenants are behind in rent and the landlord wants out

4. Tenants are drastically under market rent. If this is the case, please keep in mind the new rent control laws regarding raising rents and vacating tenant occupied units.

The properties you’re seeing may have a combination of these. Can you provide an address of one you’ve seen and we can help break it down for you?

@Sean Smith

This really helpful Sean.

I'm in a similar situation. I'm deciding on investing in a SFH in Elk Grove or a duplex in Fair Oaks. Would you help me with the analysis? Does the number make sense?

4932-4934 Venuto Way, Sacramento, CA 95841-

SFH

9382 Bennoel Way, Elk Grove, CA 95758

@Jim Dean just sent you a message regarding these two properties. The challenge in "do the numbers make sense" comes from what kind of return you're looking for, and how much risk you're willing to take on.

@Jim Dean 4932 Venuto Way is not an active listing. Even when it was active $2,385 in stated rent on a $425k listing is low revenue. These are 2 bedroom units.