What about apartment buildings vs family homes? - Posted by royland
Posted by royland on December 04, 2002 at 16:43:30:
That is interesting - I never thought about that. I did hear one critic of Mr Sheets say that Mr Sheets and many of his students actually made most of their money buying APARTMENT buildings rather than 3 family homes which led the critic to believe his courses were not as great as he thought they would be.
On the other hand, my broker is s shining example of a successful student with over 44 family homes generating $60,000 a year!
2br duplex easier to rent BUT harder to sell - Posted by royland
Posted by royland on December 04, 2002 at 14:24:49:
Hi Nate - your logic makes sense with regards to multiple configurations available for a duplex. But, it makes me uncomfortable to think that when the times to put the profitable rent property on the market that it could be real white elephant to sell…Could I ask you:
Do you buy to rent or to sell
How many duplexes have you been involved with and what has been the high and low points.
His course got me started. And some folks like SFR vs multi… You get a better type renter and longer term, but your price per unit is higher. I am not interested in that florida duplex. It is 2 hrs from Tampa to Alligator Alley and then 2 hours across. However, You should still be able to get the information with a few phone calls. You should try to get as much information as you can. You should also be willing to let an investor have this one because they will have to do all the work… negotiate,close the deal, etc… Other than a finders fee, why don’t you find someone down there and listen and learn. It’s still not close to a deal in my eyes but could turn around under the proper control of an investor with the means to make it happen.
Posted by Eric C on December 05, 2002 at 07:59:50:
Hi -
Most of Nate’s comments are right on the money; in my experience 2 BD units are somewhat more difficult to sell quickly and at full retail.
That said, they are usually much easier to acquire at a price that makes sense for an investor. And, as Nate says, they rent well.
So I guess it really depends on your strategy. Are you buying to hold? Or are you looking to make a quick score? What is your level of experience? Your exits? How does this property fit into those plans?
I usually favor the long side – I purchased my first property, a duplex, in the '70s – and I still have it.
On the other hand, I’ve also purchased properties (including duplexes) that I intended to hold only as long as it took to make it to the bank with my profit.
And as for numbers, I’ve owned a tad over 200 duplexes.
Yours,
Eric C
PS - I never like to look at one property or one deal at a time. Even if my funds were limited, I would still be looking for the best deal overall; that usually means keeping your options (and your mind) open.
Re: 2br duplex easier to rent BUT harder to sell - Posted by Nate(DC)
Posted by Nate(DC) on December 05, 2002 at 24:44:41:
I don’t think you would have trouble selling it to another investor. I think you would have trouble selling it to an owner-occupant. You may not need to do that in order to make money. Or you may be in a market where there are lots of 2BR comparables and they sell just fine.
My experience is in DC…not relevant to the Florida market anyway.