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Started By
Message
Why not build triplexes or quads instead of multiple individual rent houses?
Posted on 12/21/15 at 12:51 pm
Posted on 12/21/15 at 12:51 pm
When I was fresh out of high school I rented in a four plex
Landlord had one yard to maintain, one roof to get old, ect...
Landlord had one yard to maintain, one roof to get old, ect...
7
Posted on 12/21/15 at 12:58 pm to Old Sarge
Because sharing walls with neighbors sucks and will hurt the rental rate.
The market is fairly efficient.
The market is fairly efficient.
Posted on 12/21/15 at 1:20 pm to TheHiddenFlask
quote:
The market is fairly efficient.
Can you expand on what you mean by this?
Posted on 12/21/15 at 1:21 pm to Old Sarge
Because some people want the 1500 sq ft and yard of a home. There is a market for this.
There is also a market for multi-family, too.
There is also a market for multi-family, too.
Posted on 12/21/15 at 1:32 pm to LSUFanHouston
quote:
Because some people want the 1500 sq ft and yard of a home. There is a market for this. There is also a market for multi-family, too.
This is correct. It is just a different strategy. My current plan is buying single family homes between $80-110K in a fairly small area. We have also bought and flipped a mobile home and currently looking to take a percentage of an appartment complex. If the deal is right, we will look at anything but our plan from the start was single family homes and that is what we aggressively seek out.
Posted on 12/21/15 at 1:43 pm to Old Sarge
A lot of renters are also trying to attract a higher clientele, so their places don't end up trashed.
Posted on 12/21/15 at 2:20 pm to seawolf06
quote:If it were so lucrative, you'd see a ton more 3 and 4 plexes.
Can you expand on what you mean by this?
Posted on 12/21/15 at 5:42 pm to Louie T
It's also according to zoning. Not every piece of land is zone multi residential. Most of the time there are restrictions to the number of dwellings per ft of frontage Rd. For example I'm developing a lot right now to hold 2 nice mobile homes to rent. I had to get zoning approval because I only have 100 ft of frontage but I had the acreage to have 2 dwellings.
Posted on 12/21/15 at 5:44 pm to Jcorye1
quote:
A lot of renters are also trying to attract a higher clientele, so their places don't end up trashed.
While none of the other reasons were wrong, this one is the rightest.
Posted on 12/22/15 at 7:19 am to Old Sarge
Know thy market.
Posted on 12/22/15 at 10:03 am to TheHiddenFlask
This is good to know. I was recently looking at a 4 plex
Posted on 12/22/15 at 10:16 am to stevengtiger
quote:
This is correct. It is just a different strategy. My current plan is buying single family homes between $80-110K in a fairly small area. We have also bought and flipped a mobile home and currently looking to take a percentage of an appartment complex. If the deal is right, we will look at anything but our plan from the start was single family homes and that is what we aggressively seek out.
Just curious, but what stipulations or requirements do you have set when you calculate your return on a deal? I have one rental house right now and would like to expand this business in the future.
Posted on 12/22/15 at 10:26 am to Old Sarge
Zoning views multi family as commercial as opposed to residential, so the taxes are about 4 X higher. If you do this, I'd try to have the deed read as a condo instead of commercial, but I'd obviously recommend speaking with a RE attorney.
Posted on 12/22/15 at 10:30 am to TigerRob20
quote:
what stipulations or requirements do you have set when you calculate your return on a deal?
We are generally looking for a ROI of around 10%. We have a general area in which we are looking to buy houses and our focus is to keep around $110K or less. The average rent in the area is around $1,100, so we know that if we can keep them rented, the return will meet our needs. I have a seperate thread on this but we bought our first property in March or April this year and have 3 rentals so far and flipped one mobile home for a decent profit.
I have mentioned in every other thread of REI that I am very new to this business and have learned a lot but no where near as knowledgable as many others on the board.
Posted on 12/22/15 at 10:34 am to cas4t
Hadn't considered that. I didn't know commercial had that much higher of a property tax rate
Posted on 12/22/15 at 10:38 am to Old Sarge
Likely varies but that's the case here in Nashville.
Posted on 12/22/15 at 10:38 am to stevengtiger
quote:
We are generally looking for a ROI of around 10%. We have a general area in which we are looking to buy houses and our focus is to keep around $110K or less. The average rent in the area is around $1,100, so we know that if we can keep them rented, the return will meet our needs. I have a seperate thread on this but we bought our first property in March or April this year and have 3 rentals so far and flipped one mobile home for a decent profit.
I have mentioned in every other thread of REI that I am very new to this business and have learned a lot but no where near as knowledgable as many others on the board.
That's right, I new I had read about your experience with this before.
I'm in BR, so a lot of the places I would be purchases would be in a higher range than that, I saw a few 2-3 BR town homes for under 140, which wouldn't be bad, but I another single family house near my current rental would be more ideal.
A work in progress I guess, as I still have a lot to learn as well. After what I have read on this forum, as well as some things on bigger pockets, my ratios an income range for this property seem to be in a great position.
This post was edited on 12/22/15 at 10:40 am
Posted on 12/22/15 at 10:42 am to TigerRob20
quote:
but I another single family house near my current rental would be more ideal.
Two of our houses are across the street and our new third one is about two blocks away. I like having them close as it makes it easy to do drive bys and check things out. My goal is to have around 10 houses in the next 2-3 years and have them all paid off in about 10 years. We are on track to pay off the first two in less than 10 years as we are paying an extra $150-200 a month to principal.
quote:
A work in progress I guess, as I still have a lot to learn as well
Right there with you.
Posted on 12/22/15 at 10:44 am to Louie T
quote:
quote:
Can you expand on what you mean by this?
If it were so lucrative, you'd see a ton more 3 and 4 plexes.
I'd say zoning plays a big part in this as well.
Posted on 12/22/15 at 10:53 am to Y.A. Tittle
quote:
I'd say zoning plays a big part in this as well.
See Gardere and GSRI for the perfect example of this.
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