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Buying a duplex-CS

1,949 Views | 15 Replies | Last: 7 yr ago by Rice and Fries
BCS AG 2012
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AG
Thinking about buying a duplex in CS. My wife and I will live on one side and rent out the other. What are yall's prior experience? Thoughts?
chrisfield
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Sponsor
AG
Can be a very smart investment strategy. Have to buy right, though. Buy something that needs a little TLC and get some sweat equity.
CS78
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Not many of them out there being sold and what does come up, the numbers rarely work on. Overall a great plan, just make sure the numbers work.
SoTheySay
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S
This.
ccrouch001
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I did this in 2009, it has worked great! I have been fortunate enough to have the same renter in the other side since I bought the place. Try to get a newly hired TAMU staff in your place if possible.

Talk to an agent about finding a place. I bought mine from an agent in town who had multiple properties and was willing to sell me one of his. Duplexes do not seem to come on the open market too often.
SteveBott
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If one side is primary residence then mortgage costs are much lower and higher loan to value. 75% vs 90%
Aggie82x2
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AG
Time for someone to build new duplexes! No more 4-plexes please! Only want to share one wall and have more yard.
CS78
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Aggie82x2 said:

Time for someone to build new duplexes! No more 4-plexes please! Only want to share one wall and have more yard.
Would be nice. Its not my area of expertise but last I knew the city was really hesitant to approve any zoning for duplexes but has no problem approving all these dang apartments that are on the verge of collapsing the local rental market and on track to become tomorrows HUD housing.
Deats99
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I guess I am not allowed to contribute any more without paying for advertising, but call me if you want to run some traps. two one four 601 818one

A good plan violently executed now is better than a perfect plan executed next week.
-George S Patton
Bill Robbins
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Deats99 said:

I guess I am not allowed to contribute any more with paying for advertising, but call me if you want to run some traps. two one four 601 818one


The only way I have found to help people is through a PM. TexAgs doesn't want you to play if you don't first shell out $10,000/year for advertising. #Pay2Play
Deats99
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I have been giving real estate advice on here for 10+ years and it became an issue in the past 12 months. Pretty sad.
A good plan violently executed now is better than a perfect plan executed next week.
-George S Patton
SteveBott
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AG
Deats I missed something. Did the mods delete a post?
Deats99
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Yes, one where I offered some insight on the "living in half of a duplex while leasing the other half" experience.
A good plan violently executed now is better than a perfect plan executed next week.
-George S Patton
dreyOO
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CS78 said:

Aggie82x2 said:

Time for someone to build new duplexes! No more 4-plexes please! Only want to share one wall and have more yard.
Would be nice. Its not my area of expertise but last I knew the city was really hesitant to approve any zoning for duplexes but has no problem approving all these dang apartments that are on the verge of collapsing the local rental market and on track to become tomorrows HUD housing.
Seriously? What's happening?
Rice and Fries
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You just have these factors and its effecting the markets fundamentals....

1. Private/Public Partnerships: The University is leasing out land to have dorms/apartments built by george bush and welborn. This effects the market dynamics because the farther away from campus, the less attractive you are to the bigger portion of the student body (undergrads) cause they want to be close. Normally one new dorm wouldn't be too bad, but they are adding something like 5000ish beds, which adds to the already new/current apartments.

2. More and more developers are "attacking" B/CS. For example, there seems to be all kinds of new developments springing up around random areas (Highway 30 & University). At this point, they have barely suitable metrics to support the underwriting for the construction, but are factoring in this stupid "25,000 by 2025 plan" and think A&M is never gonna stop exploding in growth.

3. Theres just so much money chasing any type of deal that its getting to be ridiculous. If you don't believe me, look at Northpoint Crossing. It is a mixed use development with retail that has pretty much been vacant (except for World Of Beer). It is barren and terrible b/c no one is going to want to go there to shop. It was a stupid waste of money to build out the retail portion of the property just so it can sit vacant. But I'm sure they are hoping to leach traffic from the Century Square developement next door. But the access to the location is terrible.

Basically, all this capital is chasing deals and they are getting worse and worse overall. Whats going to happen is the market will reach over saturation, where they struggle to find enough tenants, which means they will lower rents, which will lower EVERYONE's rent (cept maybe a few by A&M) and try to target other housing types. If they can't get the right amount of rent, the property will go into default, be firesold by a lender to another group. Thus hurting the overall market value of all the properties in the area.
dreyOO
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I'm not in CS, but I had planned to make some investments this summer. That situation sounds pretty bad.

So you're saying it's getting completely overbuilt and margins are being affected? I suppose I could take that into account and be pretty conservative.

either way, it's making me consider looking at different markets.
Rice and Fries
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Sooner, rather than later, the tide is gonna recede in the market and we're gonna find out who's swimming naked.
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