All Forum Posts by: Idan Zur

I own 3 apt complexes and 5 fourplexes.

I think that fourplexes are way more advantageous than 4plexes and this is why

I recommend you to buy a few fourplexes within one mile radius. 

Year built will be much better (less maintenance ) Operation will be efficient because of the proximity within one mile radius (there is also no traffic in killeen) 

Terms are 30 amortized in fourplexes vs commercial - usually 15 -20 yrs amortized on older apt buildings

Interest rate is lower in residential - 1-4 units because its Fannie mae (a government sponsored entity vs a bank for commercial properties usually ) 

No balloon in conventional financing for fourplexes vs commercial properties (usually in five years a balloon - much much more riskier then what people estimate)

Price per unit for fourplexes is better per year built (less debt payment meaning more cash flow)

You have an ability to sell it to commercial investor in the future as a portfolio package with commercial loan but also an option to sell it one fourplex at a time for smaller investors.

Be aware that in time of recession - commercial banks are way less liquid than residential- government sponsored entities like fannie mae / fha / va that get to print money from uncle sam

4plexes are still residential  

I also find that the appreciation - percentage from the purchase price for fourplexes now is higher in then for apt complexes 

Its harder to get and maintain insurance on apt complexes then residential 4plexes. The condition requirements for apt complexes is more stringent

As owner of apt complex you will need to hAve about 2 years of profitable tax returns so you can find a buyer that will find a mortgage bank willing to loan on this property (seasoning) which is not the case in 4plexes where once the rents were upgraded - you can sell it immediately.

i highly dont recomend to invest in any sfr unless you are doing a fix and flip as sfr hardly make any cashflow. 

You only have one tenant and when there is a move out - you have major make ready cost and vacancy cost. 

I own 139 units now and in the past 3 years i only bought fourplexes ( good cash flow , apprichation and rent increase-value add that you can resale for a great profit) 

Peter, they have a few duplexes under construction to sell (will be ready in a few months). They sell it for about 365k with 10 yrs warranty. In austin a new duplex will cost you more then 800k

How do you feel about investing in killeen?

I own 139 apts in Killeen and im a realtor. 

has low vacancy and good tenants mix.

Copperas cove which is only 10 mins from Killeen has slightly less demand then in Killeen because its farrer from Austin and there are less stuff to do there then in killeen which is about 160,000 people today (grew from 80,000 in about 15 yrs!)

I calculated in my apts / fourplexes the average longevity of the tenants in the apts. this are numbers for b/ c properties. Here it is :

One br- 17 months

2br- 25 months 

3br - i dont have too many of these but it looks that its more then 2.5 years (usually this apt involves kids going to school .

Vacancy rate is for non lazy managers lol (there are a lot of them !)  now is better on the 2br them the 3br - true to 2018 : 5 percent vacancy.

One br vacancies : 5 percent in the spring/ summer and 10 percent in the winter time

I like to buy a fourplex reletively new with low rents for about 140-200k (40-60k down pmnt) and then sell it between a year to two years after for about 40-80k more after i have increased the rent (making the fourplex more cashflowing to the investor) and have renovated the apts somewhat.

Then i take the money and do tax differed exchange so i wont pay capital gain tax and buy roughly 2 fourplexes with the money i have (down payment plus apprichation ) 

Max rent will be 650 for a 2br

And 699-750 for a 3br

Buda is a rural town - 10 minutes south from Austin on the way to San Antonio. 

Im thinking buying a new duplex over there 

What do you think about the possible rent and growth of this town ?

How do you feel about investing in killeen?

I own 139 apts in killeen and as a realtor i know the market very well

Killeen has low vacancy and good tenants mix

You can buy a fourplex for late 90s - early 2000s for 200k more or less

Max rent will be 650 for a 2br

And 699-750 for a 3br

There is a VERY HIGH appreciation momentum over there you can use to your benefit !

Killeen grew from about 80000 people in 2000 to 180,000 today !

This which will likely cause a SIGNIFICANT rent raise and apprichation .

Killeen’s 15 miles radius is 400,000 people and its 50 mins from Austin vicinity (the amount of tenants in south killeen that work in austin vicinity is very big) austin vicinity is about 1.3m people !

Austin’s growth helps Killeen’s growth a lot !

Killeen is also very attractive to other people because of the lower rent

Hi

I own 139 units in killeen and im a realtor also. 

In south Killeen today you have roughly the same amount of Austin employees residing in killeen as the soldiers!!

So the diversity between soldiers in the biggest military base , austin employees , v.a retirees and bell county’s employees (appx 400,000 people ) is a great variety of potential tenants

on a 2k monthly salary - an austin employer can’t be approved on a 2br /3br in austin.

Rents in killeen now can realisticly be $650 on a 2br or 700-750 on a 3br with very low vacancies. That is the reality for me as an owner. 

Fourplexes in 2017 cost 110k to 185k and in 2018 150k-235k so very good apprichation momentum :)