769: Q&A: How Do I Calculate the Returns on a Duplex? - Episode 769

Investing in Real Estate with Clayton Morris | Investing for Beginners

Clayton Morris

Investing, How To, News, Education, Business, Business News

4.1 • 1.1K Ratings

🗓️ 30 August 2021

⏱️ 17 minutes

🔗️ Recording | iTunes | RSS

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Summary

What is the best way to calculate returns on a duplex? Should you just double the numbers for a single-family home, or does it come down to percentages? That's the first question I'm answering on today's show!

On this Q&A episode of Investing in Real Estate, I'm taking three of your thoughtful questions on duplex returns, what to do when a tenant makes costly damages to your property, and ideas for getting started with $20,000. Tune in to hear my answers to your questions!

Transcript

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0:00.0	Welcome to the real estate investing show everyone. I'm Clayton Morris, longtime real estate
0:09.4	investor and founder of the company Morris Invest, which is a full-service rental real estate company.
0:14.8	Thank you for joining us.
0:15.7	This is the show where we really aim to help you become a more intelligent real estate
0:18.9	investor and we answer your questions.
0:21.0	It's Q&A day here on the show. So you can go to Morris Invest.com
0:24.4	slash Clayton and leave us a 30 second voicemail question, questions that you have
0:28.4	about real estate investing, financing, taxes, it doesn't matter. We will try to answer it for you here live on the show
0:34.5	all right our first question today comes to us from Tim Tim take it away
0:38.7	hi Clayton my name is Tim my question is with regards to duplex acquisitions.
0:45.9	You had said with regards to single families,
0:48.4	the most you would pay is $125,000.
0:51.7	With regards to a duplex acquisition, where should the ceiling on the purchase price be?
0:58.0	Should I just double it to 250K or should I base the purchase on the duplex solely on percentages for gross
1:06.8	ROI net ROI 1% etc. Thank you. Thank you Tim. Well you kind of answer your
1:12.4	question right there towards the end.
1:14.5	And, you know, it really depends.
1:15.8	I sort of, I've said about, I've said 125, I've actually said as high as 175,000 on single family homes.
1:24.0	You know, it depends on the range and obviously it depends on,
1:26.6	it depends on the rent, it depends on the taxes,
1:29.6	it depends on the area, it depends on the
1:33.0	vacancy rate so there's a lot that goes into that that's just like a rule of thumb
	...

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