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re: Why not build triplexes or quads instead of multiple individual rent houses?
Posted on 12/22/15 at 7:26 pm to Old Sarge
Posted on 12/22/15 at 7:26 pm to Old Sarge
As long as you can build it within a budget and rent it to a level that provides the return that you're seeking, 2-4 unit properties can be excellent investments. Think $/sq.ft. and literally being able to put one tenant on top of another. Sounds kinda kinky, don't it? 
1
Posted on 12/23/15 at 2:07 am to Old Sarge
quote:
Hadn't considered that. I didn't know commercial had that much higher of a property tax rate
It doesn't. It's still residential property and it's assessed at 10% of fair market value. But unless it's owner-occupied it doesn't qualify for the homestead exemption which shelters the first $75,000 of market value from taxes.
Posted on 12/23/15 at 6:44 am to Jag_Warrior
quote:
As long as you can build it within a budget and rent it to a level that provides the return that you're seeking, 2-4 unit properties can be excellent investments. Think $/sq.ft. and literally being able to put one tenant on top of another
I inquired into building a duplex and was told by two separate companies that I couldn't in Baton Rouge, and that I wouldn't even want to because of the fees associated with it because of having to have separate meters and such, that I might as well build two houses because the cost would be the same.
I personally believe that they were just sales people for construction companies who didn't do Duplexes and were both just trying to steer me into their product lines, but I'm not 100% sure that they were lying.
Posted on 12/23/15 at 10:08 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.
I have considered doing this and from what I can tell from my friends who buy and sell rental properties, the key is volume or multiple streams of income.
My question for you is....do you actually make good money doing this?
Posted on 12/23/15 at 10:19 am to lsufanintexas
quote:
My question for you is....do you actually make good money doing this?
That is a good question and a hard one to answer so far. My dad and I have chosen not to pay anything out to each other at least for the forseeable future unless it is profit from a flip in which we may pay ourselves a small amount.
We have only been in REI for about 8 months but I can tell you that so far, we are cash flowing very well. With our three properties, I have enough money to pay PITI, an extra $150 on each loan and have several hundred dollars to put away in our account.
My goal was and still is to treat this as a long term investment. I knew going into it that I would not see anything money for the first several years and would be working "for free". In 10 years, I will be 40 and hoping to have, at a very minimum, 10-20 rent houses similiar to what I described all paid off and generating revenue. My longterm goal with them is to have enough supplemental income that my wife can retire at 45.
Posted on 12/23/15 at 10:31 am to Old Sarge
quote:
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...
It's really a zoning issue. A lot of municipalities won't let you build a multifamily dwelling in some residentially zoned areas.
Posted on 12/23/15 at 10:32 am to stevengtiger
You mean be a full time landlord at 45? Because managing 20 properties isn't retiring.
Posted on 12/23/15 at 11:51 am to Old Sarge
quote:
You mean be a full time landlord at 45? Because managing 20 properties isn't retiring.
companies do that for you for ~10% of rent. yes you can retire on beach front property with as little as 2 homes(if you choose to move to a place like the Philippians)
Posted on 12/23/15 at 12:08 pm to Old Sarge
quote:
You mean be a full time landlord at 45? Because managing 20 properties isn't retiring.
Lets just say that my 20 houses bring in around $22,000 a month. I will gladly be paying someone $2,200/month to manage and keep another $5,000 or so in the account for maintanance/repairs. $14,800 a month aint bad for very little to no work.
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