Keithville, LA · Member since 2017 · 2 posts · 0 votes
Hi, I'm 20 years old and looking into getting a duplex. My thoughts are
- turn key house hack: $185,000 rent about 750 which will lead me to pay about $500 at most out of pocket but that's not bad for a two bedroom apartment in my area (low goals not trying to make money just trying to live cheaper)
-dirt cheap duplex: $50,000 with about $35,000 Reno budget renting out both units around $550. Cash flow of about $100 a month and then doing a home equity loan and doing it all again. (This is the fast way I think in gaining property)
My question based on info above which would you choose given my circumstances. Both have their value depending on you're thought process and end goal. Just wanna hear some feed back from someone but google hahaha
My goal is for cash flow. So I probably wouldn't pick the turn key house hack. There are a lot of assumptions I made with expenses/cap ex, but I couldn't get a positive cashflow if you were actually to totally rent both sides out.
With the dirt cheap duplex renovation, I could see it working a bit better, that is, if the total rental is $1100/month ($550 * 2 units). Again, I made quite a few assumptions, but even looking at the 1% or 2% rule. It falls right in between there - $85,000*1.3%=$1100.
If I were totally honest, I would probably pass on both...but I am picturing them in my market. I am hoping for a >10% on my cash invested.
My goal is for cash flow. So I probably wouldn't pick the turn key house hack. There are a lot of assumptions I made with expenses/cap ex, but I couldn't get a positive cashflow if you were actually to totally rent both sides out.
With the dirt cheap duplex renovation, I could see it working a bit better, that is, if the total rental is $1100/month ($550 * 2 units). Again, I made quite a few assumptions, but even looking at the 1% or 2% rule. It falls right in between there - $85,000*1.3%=$1100.
If I were totally honest, I would probably pass on both...but I am picturing them in my market. I am hoping for a >10% on my cash invested.
Hi, I'm 20 years old and looking into getting a duplex. My thoughts are
- turn key house hack: $185,000 rent about 750 which will lead me to pay about $500 at most out of pocket but that's not bad for a two bedroom apartment in my area (low goals not trying to make money just trying to live cheaper)
-dirt cheap duplex: $50,000 with about $35,000 Reno budget renting out both units around $550. Cash flow of about $100 a month and then doing a home equity loan and doing it all again. (This is the fast way I think in gaining property)
My question based on info above which would you choose given my circumstances. Both have their value depending on you're thought process and end goal. Just wanna hear some feed back from someone but google hahaha
Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
9y
@Aric Wilkerson I would not recommend the dirt cheap duplexes option. Duplexes can be challenging enough in decent areas but when you get in to low end neighborhoods, they can be a real nightmare. $100/mth cash flow is too thin.