All Forum Posts by: Justin Pandolfino

My goal is to A) keep my personal housing costs low to B) generate cash flow when I move out and, as a lifelong renter, to C) begin to build equity.

I think the duplex accomplishes all three goals.

However, I also think that I could accomplish A and C by purchasing a single family house and could accomplish B by investing the difference in mutual funds.

Does that line of thinking make sense?

The house currently generates $4500 per month ($2500 + $2000) in gross income so, by following the 1% rule $450,000 would be a fair purchase price, right?

I am planning to spend about $40,000 to upgrade both units.  I'm also going to offer the tenant a parking spot in an attached garage and access to the laundry room with the hopes that I could push my ask from $2000 to $2500.

After a few years building equity, I am planning to take a home equity loan and buy a single family home while still maintaining the duplex as an income property. With the upgrades, I'm hoping to push my ask from $2500 to $3000 for the unit, when I move out.

In other words, in a few years I am planning to earn $5500 in gross income per month or ($66,000 per year), which would be 1.1% of the purchase price.

Hi BPers,

I am new to the forum and have an investment I would like help analyzing.

I have $150k and am deciding between buying and living in a multi family house or buying a single family house and investing the difference in mutual funds. I have not found a single family house but would look to spend around $350k with a 20% down payment.

The multi family house I have found and am considering purchasing is a duplex that is outlined below:

Asking Price: $500,000

Loan Details

• Down payment: $100,000
• Loan Amount: $400,000
• Interest Rate: 4%
• Loan Duration: 30 years

Rent Roll

• Unit #1: $2,500 (owner occupied)
• Unit #2: $2,000

Annual Expenses

• Taxes: $17,500
• Insurance: $2,500
• Other: $12,000

Capital Expenses: $40,000

The duplex is located near NYC, one block from the train station so it is both convenient for me and should be no problem to rent.

My questions are listed below:

• At what purchase price does this duplex make sense for a buy and hold strategy?
• Does it make more sense to invest in the duplex or to buy a single family house and to invest the difference in mutual funds?

Thank you in advance for all of the expert help!

Justin