Whats your thoughts on buying a unit in a triplex?

Question

I know many of you are against buying condos/townhomes as investment properties and I totally agree. What's your take on buying a unit out of a duplex/triplex? I found a bank-owned unit out of a triplex close to downtown but in a so-so neighborhood. 2 bdrm's/1 bath and bank is asking $54k. Thanks!

Rob Gillespie · Answer

Depends on the price and rents, but I typically think small multi unit houses are management nightmares! You will have a lot of folks moving in and out along with complaining about neighbors and parking situations. I would stick with single family homes. I am sure opinions will vary.

Mike Gardner · Answer

Sorry about the post above was not sure I was able to post...  I did not intend to post here and do not have a lot of comments, however, my first thought is you should go some where where the masses are not...

Perhaps Condos and Town Homes is the place if you statement is correct

Ryan L. · Answer

Thanks CJ I hope we can do some deals in the future!!

Jon Holdman · Answer

I sent you a PM, Ryan.

CJ L. · Answer

I've seen quite a few of these so far this year. As Jon said alot of the so-so areas have now become popular mainly because the close distance to downtown but also the new light-rail tracks that are being put in.

By the way Welcome to Denver.

Ryan L. · Answer

Thanks John! Being that i'm an investor newbie and just recently relocated to the Denver area (where the property is), would you mind if I PM'ed you for your advice on the location?

Jon Holdman · Answer

The arguments against condos and townhomes usually deal with the HOAs and their ability to cause you troubles.  In our area in small properties like this "party wall agreements" are pretty common.  That's just a documented agreement as to how the property is split up.  In these cases, there's no HOA, so you eliminate a big source or troubles.

So, a 2/1 close to downtown (Denver, I assume you mean) might be interesting.  Depends on where its located, as there are some really so-so neighborhoods that could make the claim of being close to downtown.  Even so, it could be interesting because many formerly so-so (or worse) areas are now very hip.