Bought two duplexes at 150k all in bringing close to 3800 a month. It has been pretty steady with one tenant being problematic. Wondering if this is one of the relatively easier path to get passive income? I know maintenance and repair is coming to play, but wondering what your thoughts are.

like
Posting as :
works at
You are currently posting as works at

Not sure 5 months is enough to say it’s an easy way to passive income but sounds like you’re off to a good start.

like

I agree with D1’s sentiment. I bought 2 properties in 2021, and definitely would have made more money with less headaches investing in the S&P 500.

How long ago did you buy those? Overall, the real estate market has changed a lot over the past 18 months. I’d be impressed if you bought them recently.

Just be sure to save for major capital expenses and vacancy. A leaky roof in the middle of winter or a dead AC unit in the middle of the summer can kill several months or years of cashflow if you haven’t saved accordingly.

The percentages I gave you were from gross rents.

If your rent is $950 per unit per month, 10% assumes that you’ll have about 5 weeks of runway to get it leased back up before dipping into reserves. If you have 3 reliable tenants and that safety net gets up to around 3 months worth, then maybe you dial it back a bit.

For CapEx, you can adjust based on how recently major systems have been replaced. If your roof, HVAC, plumbing, electrical, and flooring are all less than 10 years old, maybe you dial it back a bit. But if they’re more than 10 years old, you’re looking at a potential $5k to $10k repair at any point in time. And those repairs are basically guaranteed to hit at the worst possible time (roof will go out in the middle of a storm, AC or furnace will go out the hottest or coldest day of the year, pipes only seem to burst at 3am, etc…)

Where can you get 4 units for $150k. I assume those are $950/month each.

Right, so, where are yours? Let’s not get precious with the intel

likefunny

If this is all on point, then your cap rate should be at like 25%, which is ridiculously high. I'm not sure where you can buy a unit at 35k and rent it at 1k per month, but youv'e found a sweet spot.

Nope. 35k per door

Related Posts

Anyone have an insight or advice about taking on freelance projects while receiving unemployment? I don't want to loose the income I will receive form UE for taking on a small project

like

I’m a free-lance video producer wanting to expand more into social media content creation. Any advice? Feel especially weak on understanding analytics. Course recommendations? I have strong journalism background. Write, shoot, direct and edit.

like

I recently interviewed for L7 EM at Google and had 4 great interviews and one not so great system design. I submitted external referrals all of which gave great feedback. The recruiter said the next step is team match/interviews and then the HC. Anyone in a similar situation? What was the result? Google

Could someone suggest a really good attorney for a contested divorce case in SF Bay Area ? Thanks

Plan on visiting SFO this August and wanted to check if any F is up for drinks or dinner spend some quality time. Male 34 , tall 5 11, brown and happy to message and set up some time if we find each other interesting.

like

I just discovered that scheduling a call for 7 am the morning after a boozy team event is the best way to get easy agreement and consensus. No debating for the sake of debating when everyone is sleepy! 😂

likefunny

when Work >>> Life 😅

Post Photo
likefunny

(Not frm Accenture)
If you are on notice period and not doing work properly or on time then what can be the consequence ?
They cant put me on performance defaulters as I voluntarily resigned and also got good feedback from client.
The reason I resigned was the sh^^head manager and project.
He said I would be released from project soon and then on bench but after resigning he is saying you have to serve the NP n we cant release early.
This is only option left to get released from this sh^t place

like

Most of the successful people I've seen in my office are single or have no children. It seems like there is a correlation between having kids and not being a high performer. I don't think it's on

likefunnyupliftingsmart

Interested in eventually exiting into wellness tech.... what are the best consulting firms to start at?

like

I got an offer in industry! Feeling excited but at the same time very confused. It’s a good offer that I don’t want to pass up but also feel extremely bad leaving during busy season. Is a 3 week notice enough? Do I let this opportunity go and just hope something will line up down the road ? Thoughts ?

like

Recent cases of PERM approved within 5-6 months? Submitted in early June, hope to get approval by EOY.

like

Mid-level when she's leading the call: please make sure you take notes. It's expected of the person not leading a call (note I always take notes)

Me(jr): asked to lead a call for a different deal as training. Mid-level doesn't take notes (also on call) and tells me it's the job if the junior to take notes.

likefunny

“We had complimenting genitalia.”

likefunny

Anyone has a good rec for improving SC in a really short time. Test in 2 weeks and still not getting half my SC questions right. CR and RC are at about 80% accuracy.

like

What’s the main difference between working on healthcare at a traditional shop like SSW vs. a PR place like Edelman or Marina Maher?

like

Anyone know the average associate hours billed at Gunderson?

like

I am looking for a Functional consultant role in blockchain and metaverse. Please let me know if you can refer me to your organisation.thanks

Interviewer : Why do you need this job?
Me :

Post Photo
likefunny

Additional Posts in The Real Estate Bowl

For anyone that has bought a townhome from Lennar, are the walls fairly well insulated for sound?

What, if any, were your main complaints?

like

How soon should you think about refinancing? Closed about two months ago at 3.25 (30 years) but rates keep dropping...

like

Is it okay to buy a home worth 660K for a couple earning 325K TC together? The HOA and taxes for this home bring the monthly payment up to ~4.8K which is ~32% of our monthly take home after tax…we’re first time home buyers, any advise is appreciated!

like

Can I get a commercial loan without 25% down?

like

Where are you buying your kitchen cabinets? Used Ikea in the past but that's clear not going to work right now.

like

Due to a family situation we are looking to move to a different state. Normally we would sell our current home and buy a new home in our new location. However, with todays prices and interest, will it make more sense to rent out our current home and rent a home ourselves vs. selling and buying immediately when we move? We are moving from Vegas to Sacramento and we are not sure how long we would stay in the new area. Thoughts?

Any good HELOC recommendations?

Ideally 90% LTV, minimal closing costs, desktop appraisal.

like

Looking to buy a studio in NYC (~600k). How low should I go below asking price when making an offer (especially given that the price went down 5% two months ago)? I’m thinking 15% below asking. Location is okay, no view, and a month to month renter in place. Thoughts?

like

What are some of the things that were a MUST when buying your first home and what were some things that you were more flexible with and why? I’m having a discussion with my partner about what we absolutely need and what can be worked on later.

like

Correct me if I'm wrong but isn't it more advantageous to have low housing prices and higher interest rate? If that's the case, you can always refinance when/if the interest rate lowers again. Is there something I'm not seeing?

like

Has anyone made a property purchase using sheriff sales? Can you shed any light on the process or share tips or resources?

like

I'm early in my career, managed to save $30K to invest, and want to get my hands dirty with a rental property without too much risk (e.g. no HML/flipping). It sounds like that's a tall order in the NY/CT area given the prices, not to mention whether I'd be able to get a mortgage on anything below $100K, but I figure I'll give it a shot anyway. Any advice on what you might do in my position? Am I being crazy with this idea?

like

Anyone got a loan with Guaranteed Rate? Started looking for a condo(Chicago) and keep seeing them pop up. Looks like they charge $1290 lender fee, but wanted to see if anyone had experience with them

like

Do you thank your tenants for paying the rent? A quick thank you text?

like

I recently bought my 1st home in TX. I want to get into real estate and eventually own/rent out multiple homes. Are there any good recommendations/tips on books/articles/websites that others have used to get started?

I've read about HELOC and cash out refinance to get a 2nd home but articles are so scattered that it gets confusing which is better in terms of tax benefits and immediate costs, etc. Anything others have found helpful that summarized how to get started would be great!

like

For those who use property management companies to manage your rental properties, what are the services that you really value and will switch out to a different one if not getting such services?

I am looking to buy my first property soon - preferably new constructions (anything except condos) anywhere in Ontario/Canada. Any suggestions where I can turn to find new construction projects? I understand I need an agent. Until I find a good one, I am looking at the houses myself. Any suggestions where I can get information about new projects happening in the province?

like

I would like to learn more about development and real estate. Can anyone recommend any books or courses that you think are informative. Eventually I would like to own a few apartment buildings, but I know there is a lot I need to learn 1st. Any advice appreciated. 

like

I'm under contract for a new build in progress that won't be done until much later this year. I fully expect interest rates will be higher than what I originally estimated. I may or may not try to lock in a good rate early, but I'm planning on renting it out and this throws a bit if a wrench in my margins. I can take it financially, but wondering, If I absolutely needed to get out of buying it, what recourse do I have? Or could I go ahead, and refinance later (who knows rates at that time...)?

like

Looking to buy in the DMV suburbs (northern VA). Is this the wrong time for such a move? Beyond down payment, got about 6mo emergency fund and must tap into it for moving&house expenses like furniture

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Scan your QR code to download
Fishbowl app on your mobile

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal