We're a young family looking to buy a multi-unit (2-4) units anywhere in the triangle that is safe and ideally in a well defined neighborhood. I've been searching for just about 2 years, the closest we've come to getting one was a bidding war on a duplex near Duke (we lost - by a lot).
This would be our first home and I'm wondering if any of the folks at BP have some suggestions for us? I've given multiple "go getter" realtors a try but so far, we're all circling on the same MLS alerts. This will be our primary residence so we're looking for more than just cash flow.
@Anthony Ross About half of the homes on the MLS receive multiple offers these days. If you already spent 2 years and still was not able to find anything you like, maybe you just need to change your criteria or expectations.
To purchase 2-4 units in a decent location in the triangle, you would be looking at anywhere between 300k-800k. I'm not a finance guy and i don't know your financial situation, but you would probably need close to a 200k yearly income to purchase that on FHA loan and i have not seen too many young families to be able to do that.
I'm guessing you are already pre-approved though if you are already working with other realtors.
My advice to you would be to be more realistic with what you want and what you can afford and what you should offer to a property you like in order to have a chance to get it.
If you had purchased a 400k property 2 years ago, you would already have about 40-60k in appreciation so keep that in mind next time you put an offer on a property.
Any realtor should be able to get you pretty accurate comps to see what your offer should be for something you like.
@Anthony Ross In a hot market like this it’s rare to find an on market “deals” as you have seen. I’m not sure what your exact goals are, but you may want to consider adapting your strategy. If you are set on a 2+ unit property you may be best served buying a list of such properties in the area you want and sending them a personal letter. We’ve sen good results with that although it takes dedication and consistency.
The other option you may consider is a “brrr” strategy. If you are willing to put in your sweat equity you will likely be able to land a deal on a good potential rental and just live there for a short time
I was able to find a small house with a garage apartment several years ago which we lived in and it turned out to be a great cash flow property although it wasn’t a standard duplex.
If you’d ever want to connect for coffee and brain storm more I’d be happy to. I have a growing portfolio of rentals but also help other investors source and manage investment properties. Let me know if I can help in anyway.
@Anthony Ross . Plenty of good suggestions already above. The market in the triangle is extremely hot and everyone is eager to purchase something ... Not only locals, but also lots of out of state money is flowing here. So, you need to strike fast and you need to be competitive to have a chance.
You can use county websites, find duplexes-quad and reach out to owners directly. You can also buy lists.
A lot of buyers of duplexes try to get cashflow. Getting cashflow is not the only real estate strategy. Sometimes appreciation makes more sense. As was mentioned earlier by Jiri, if you bought ... let's say in Morrisville or West Cary 2 years ago, you could have built enough appreciation by now, to allow you to have more buying power.
With that much appreciation, you could use a 1031 strategy for example into an even bigger asset. (5+ units, maybe out of state?). In addition, there are lots of other real estate strategies/assets that can be just as interesting and lucrative !!!
Good Luck !!!
@Anthony Ross - you need to expand your search area, possibly out of state. If that's not possible keep stowing away your cash, analyzing your ideal market and be ready to pounce.
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