I've recently found a potential opportunity to purchase 3 duplexes on 5 acres for $275,000. All homes are in good condition with long term tenants. The rents seem low all six units are renting out for $600 a month. The property cashflows around $500 a month when taking into account the 50% rule. I feel the rents could be higher but the units are in a somewhat rural area. I have the ability to partner up with an experienced investor on this. Im trying to determine if this may be too much being a new investor and if I should start off with something smaller. Any insight/experiences would be appreciated.
Define multiple exits.
The property sits on 5 acres.
What is the current and future land use map for the county or city where the property sits?? Does the local economic department have strong leadership and planning in place to grow the community??
What is the topography of the land?? If 1 acre has the properties on it but 4 is unusable terrain or swampland then you are paying extra annual taxes and upkeep for nothing and eating into the margins your usable land produces. As grow comes up over time you might be able to put a higher density on the land then current use or sell off to a developer etc. The current income and asset type of the property is just only one component of the overall investment picture.
I'm still looking into current and future land uses. The community seems to be growing but it may be several years until it expands to the point of where the properties are located.
In terms of topography the land is flat and all areas are usable the length on both sides is 353' and width is 652' the homes are spread evenly on the property to the extent that you would not realize they all fall under the same property unless you were looking to purchase it.
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