Are you looking for a duplex?
That’s a good idea because historically, these are some of the best long term real estate investments you can make.
Knowing how to locate, evaluate and acquire them is the trick.
Locate – Let’s start with how to locate them. Once you determine the areas you are interested in, you should begin searching a comprehensive database of listed and unlisted duplexes for sale (see below). This will be more effective than just searching duplex for sale or duplexes for sale.
It’s important that this database includes as much information on all available and recently sold properties as possible. You need to see all the information, including photos, rental income, operating expenses, property condition descriptions, Broker/Owner comments, etc.
Evaluate – First of all, you need to determine your own criteria for purchasing. What are your looking for? Most buyers/investors are looking for a combination of location, property condition, income potential, etc.
Now it’s time to evaluate the available properties in your area. Make sure to take your time so you can figure out which ones look like the best opportunities, based on location, property condition, rental income (actual vs. current market) and operating expenses.
Tip – ask for information on current market rents – with rents rapidly increasing in the last 5 years, many income properties will show rents that are well under market. Make sure to consider rent control laws that may limit the amount these current rents can be increased.
Also, make sure to search for recent sales in the area as well. Once you have an idea of what the market looks like, you will be able to quickly determine if new listings meet your criteria.
Now that you know the asking prices, income and expenses, it’s time to start crunching the numbers. Determine how much of a down payment will you need in addition to what the monthly expenses will be including your mortgage payment (principal and interest), property taxes, insurance and other operating expenses.
Getting Pre-Approved for a mortgage in the beginning of this process is always the best idea. You will know the price range you can afford, be able to evaluate properties better and make offers on the ones you are interested in.
Acquire – Now it’s time to make your move. You’ve found some duplex properties that you are interested, and your loan is Pre-Approved so you know what the initial capital requirements and ongoing monthly expenses will be.
I know you are thinking that it all seems like a lot of work. It’s really not if you start with getting Pre-Approved, then gain access to the information you need along with an experienced Broker to navigate you through it all.
The good news is that we can help you with all of it. Since 1991, we have helped thousands of Southern California families and investors, purchase, sell and finance their properties.
So what are you waiting for? Are you ready to get started?
Start Searching here. Get Pre-Approved here.
Brian Bush, Broker
Office: 310-817-6410 x220 | Direct: 310-293-8095
Please contact us by completing the form or call: 310-817-6410.
