Considering a Duplex on a Double Yellow Line Road, advice please?

Question

Hello BP friends. I need some help; I am considering purchasing a duplex where the entrance faces a road with double yellow lines. I would say the house entrance is an average distance from the sidewalk and road (see picture).

I ask as another investor and agent has told me he has a rule to never buy properties on a double yellow line as you have higher turnover, and you must discount the rent as it is so unfavorable.

• Do you agree or have any experience with property on a double yellow line road?
• In analyzing the deal, any recommendation for how much to discount the average rental rate when looking at comps?
• How about turnover, do you think it will be higher even with an adjusted rental rate?

Thank you as I feel a bit lost on this one and I know someone on BP has managed a property on a double yellow.  Best, Lee

Bob Okenwa · Answer

A double yellow line isn't the same in every city. It just indicates the center of a two-way road used for two-way traffic. This road may or may not be very busy, as it can be dependent on the traffic and population density of the area.

With that being said, the appraiser will probably knock down the value of the property a little bit, and some renters will be reticent to be located next to a busy street, especially if they have children.

To answer your questions:

1. No

2. Maybe 5%-10%

3. Can't speak to turnover in another city as I am unfamiliar with market dynamics in that area. If the property is priced favorably and is clean/updated, people tend to stay longer.