Have anyone purchased any duplex or 4-plex in the last year that cashflow with property management fee, prop. tax and putting down 5-10%? I am trying to determine what states and areas to invest, currently looking at AZ and TX.
Last August I purchased a 4 family in New Hampshire and am looking at a 3 Family this weekend that will probably be scooped up. They are both comfortably cash positive.
My brother in-law has 6 or 7 multis in Vermont and makes a huge positve flow.
Duplexes are much tougher of course.
In Massachusetts, where we live it would take a rehab or distressed property to even come close to positive, unless you want to be in a questionable area.
Research on line for growth patterns compared to building and appreciation rates. I also like to look for areas that historically have low vacancy rates.
Keep looking, you’ll find one soon.
Hope this helps,
Buying multi’s is just like buying any other investment property. The main thing that makes them cashflow is the purchase price, so you buy them as cheap as you can.
For example, our local REIA’s resident specialist in 'plex buying doesn’t pay more than $25K per unit ($50K for a duplex). 100% financed at 7% is about $330/month for a duplex. The average rental for a 2/1 unit in this area of NC ranges from $350 to 550/month so you can see, it’s a good cashflow, even after adding all of the variables back into the equation.
I’ve purchased 7 duplexes and 6 SFR’s in the last 4 years, and by far the best pos cash flow come from the duplexes.
A 4-plex depending on age and area, has extra expenses that a duplex doesn’t, like lawn maint. exterior lighting, dumpster pickup.
But if the math says it works out better go for it.
Everything I’ve bought is in TX in the Fort Hood Area, Killeen, Copperas Cove, Harker Heights, there’s many many good investment deals there ripe for the picking.
Doig the math will let you know what kind of deal you’ve got.
If you want information on Really Great Income Producing Residential 4-Plex’s contact us. Lance & Elaine LancenElaine@oregontrail.net