All Forum Posts by: Kyle Thompson

@Kyle Thompson I like at least 1.5% rule on small multifamily. 1% is fine but the duplexes will have twice the toilets, twice the tenants to deal with, etc. At 1.5% the extra cash flow can help you cover some of those unexpected issues. We clear about $450 per door on our duplexes in Jacksonville and book about half of that to reserves.

Hey Matt,

What If my property is just shy of the 1% rule? I had to pay a premium for a turnkey home. Completely renod.

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Originally posted by @Karl B.:

In Missouri I bought my latest duplex to live in and it meets the 1% rule, which is for the most part is an at best case scenario in that market. I'm living in one side but when I move out cash flow will be about $475-$500 per unit.

In my PA market (C-class neighborhoods) it's simple to meet the 2% rule there. I have a duplex that's at about 2.9% (I paid 45K, put in about 2K in electric and supplies for me to do repairs and it currently gets me $1370.00 a month in rent).

After insurance and property taxes cashflow is currently $360 per unit.

Point is, cash flow depends on the market. And although my MO duplex will cash flow more per door than the PA duplex mentioned above, the MO duplex cost me many times over what I paid for the PA duplex.

Thanks for your response.

What if my property is just shy of the 1% rule? Had to pay a premium for a turnkey home.

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Originally posted by @Cameron Price:

@Kyle Thompson, man I relate to this so much! I'm 33 now, but I'm an entrepreneur myself and quit 9-5 life at around your age. I've started several businesses, some of which are still operational, and some of which I shut down. Now, I own a Real Estate Brokerage and am doing very well. I live for progress and you can't get there without taking chances. The biggest victories in my life have come from those times when I was nervous and just went for it anyway! Failures also come that way. But I would rather live a life with higher highs and lower lows than a life of mediocrity, because I was too scared to take the chance. I don't know all the numbers, and can't make sense of this virus and craziness out there, so I can't tell you if this particular decision is right. But as far as being nervous and taking chances, that I can speak to. I'm glad for the moments of being brave and wish more people would do the same. By definition, you can't be brave without fear being present. Being brave is overcoming that fear. In that, I say go for it! A quote attributed to Mark Twain has been on my wall for years:

"Twenty years from now you will be more disappointed by the things you didn’t do than by the ones you did do. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover"

This gives me life. and I hope it does for you as well. I remember that feeling exactly, because I continue to chase it today. i still make those kinds of decisions, and it's always thrilling. Let me know if I can help you in any way.

@Cameron

Thanks for replying man! I am glad you related to this earlier in your journey, makes me feel a little more comfortable haha. I understand that to grow and evolve as an entrepreneur you must chase discomfort. But this one...this one is reeeeally uncomfortable.

I guess if I dig deep one of my biggest fears is if my business flops, and I am unable to afford the place anymore. I have been renting all my adult life as of now, so this would be my first mortgage without having that escape option. Like I said, my mind has been all over the place.

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Originally posted by @Brian Van Pelt:

@Kyle Thompson

You can't swim until you jump in the water. If your numbers a correct, then proceed.

roughly 275 cash flow per door. However, id be living in one of the units.

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Originally posted by @Matt Leber:

Thanks for your response! The one im looking at clears roughly $275/door. I wasn't sure how that was in comparison to others.

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Hello all,

I am 24y/o old entrepreneur in the process of closing my first deal. It has been a goal of mine for awhile now, but **** didn't get real until my offer was accepted. Then all these never before thoughts started coming to my head...

A brief description of the property. It is a duplex in one of the nicest downtown areas in my city, all recently renod and turnkey. I wasn't necessarily looking for turnkey being my first deal, but this house is definitely one of the top duplexes in my city. I obviously had to pay a significant premium for this..

Anyways, back to the thoughts...

I looked at probably 8-10 places before this, and never got to the point of an accepted offer. They either got swiped up by rich investors with "no view" offers, or simply the property wasn't for me... After having my offer accepted, **** got really real.. I started to question my decision, asking myself am I really ready for this? Do I really want to be a landlord? What If my business flops? Is this going to bring a huge amount of stress and anxiety to my life? (I already have plenty of that being an entrepreneur haha). Just stuff that never even crossed my mind before. I have no idea if I am just overwhelmed with this whole "securing the deal" process or if these are genuine feelings telling me to pull out. I just really don't know what to think anymore..

Also worth mentioning that no one in my family or close circle is in this game. So really have had no one to ask for input. Story of my life as a self made entrepreneur...

Can anyone give me any advice? Do you remember how you felt during your first deal? Is this common?

Really hope to hear input,

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Hey guys.

New young investor here...

To all who have a duplex in their portfolio. What kind of cash flow are you seeing out of your units on a per month basis. When analyzing these duplex deals, what is ideal and what are you looking for?

Looking forward to hear your input.

Thanks

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hey guys,

Sorry for the rookie question. I am wondering how I should go about analyzing a duplex deal assuming if I am living in one of the unit, and renting out the other (more expensive ) one.

I know i can just crunch the numbers assuming both rents are being paid? But is there anything else i should be looking for? Want to hear your guys thoughts.

Numbers/month (assuming im not living there)

Income = 3700

Rent (2200 + 1500)

Expenses: 3001

mortgage 1610
500 taxes
125 insurance
100 water
296 management fee
185 vacancy fee
185 maintenance fee

If I was living there rent would just be the 3200.

Please let me know and be brutally honest.

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hey guys,

I am new to the forum. 24y/o old entrepreneur here, and was wondering if you could give your input on my numbers for a prospective deal on a duplex. I intend on living in the lower unit.

Upper unit rental: 2100-2400

Mortgage: 1605

Estimates on Expenses

Prop Tax: 6000/year
Insurance: 1400/year
Water: 1200

One of the nicest duplexes in my city, whole thing has been renovated past 2 years. Property is in a great neighbourhood, with balcony views of a public park in both units.

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hey guys,

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All Forum Posts by: Kyle Thompson

Kyle Thompson has started 5 posts and replied 10 times.

Post: Duplex owners/Cash flow...

Post: Duplex owners/Cash flow...

Post: First Deal Nerves/Anxiety...

Post: First Deal Nerves/Anxiety...

Post: Duplex owners/Cash flow...

Post: First Deal Nerves/Anxiety...

Post: Duplex owners/Cash flow...

Post: DUPLEX DEAL ANALYSIS (IF IM LIVING IN ONE UNIT)

Post: FIRST TIME INVESTOR/DEAL ANALYSIS

Post: FIRST TIME INVESTOR/DUPLEX NUMBERS