Recent Duplex Purchase

7 Replies

I closed on a two 2 BR duplex Wednesday which has an existing tenant on the first floor. I was paid February’s rent yesterday of $400. She has lived in building 11 years and I told her she can stay as long as she likes. The second floor apartments windows are being replaced next week. My question now is how much should I invest in this unit. My options are to build a new bathroom and install a new HVAC system to make this unit super appealing or paint and repair and get a tenant immediately. Any questions, comments, or concerns are greatly appreciated

@Bradford Clark

You seem to already answered your own question by just saying 2 keywords. "Super appealing". The appeal is what you want, where from there you can pretty much charge whatever your heart desires for rent and tenants will cough it up.

In all essence, it depends how strapped for cash you are (which according to your statements, doesn't seem you are). You can place a tenant immediately by doing the barebones stuff to start recouping costs.

 If you are not strapped for cash, then why not invest in your property so you can charge higher rent and not have to worry about one of the most costly items in a house (HVAC) for a couple of years.   

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@Account Closed , I think you were very lenient on that tenant. You should at least be increasing the rent at least every year or every two years. Costs of maintenance, upkeep and repairs go up every year so your rent should reflect that.

Originally posted by @Brian Adzadi :

@Account Closed , I think you were very lenient on that tenant. You should at least be increasing the rent at least every year or every two years. Costs of maintenance, upkeep and repairs go up every year so your rent should reflect that.

I got a great deal on the building and own it outright.  Updating the second floor could  bring in better clientele and raise the value of the building. In time, if the current tenant moves out, then I could do the same to her unit. Good advice 

what was your plan prior to closing @Bradford Clark ? What did your research and analysis suggests as a direction that will help you meet your goals?

Originally, I had planned to just clean and paint. The more I think about it and run numbers, the more I think it’s a good idea to upgrade

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