Jeff Leatherwood
Broker/Realtor®
Read my blog below
College Station Duplex – Good Investment or Bad?
July 31st, 2008 Categories: Investment Property
In my Professional Real Estate Agent Opinion {clearing throat, chest flex and slight twist of neck} It depends: If you own a duplex and are thinking of selling, A duplex is a horrible investment and you need to get out of that thing like a burning jet. Call Me- I can Help! 
If you are thinking about buying one, its a wonderful investment…Cash in the retirement, you’ll never make it that long anyway. Call Me-I can help
Just Kidding…Oh wait…I’m a blogger now so its JK??? Right? Or is that only for text and IM (I’m soo confused)
The truth is…Real Estate is ALWAYS a good investment if you buy right. Duplex properties are no different, and in todays market they are often some of the most attractive investment opportunities available. College Station has seen a strong, STEADY, consistent appreciation that has stayed just above the national average for almost half a century!
A number of factors attribute to that strength (see “Why Aggieland” ) But the basic idea that I need to communicate is that a strong borrower could come in to College Station, Get a mortgae for 6.25% on a duplex, and expect it to appreciate 7-8% per year! With Property Taxes in College Station at 2.36% of assesed value, you almost break even without even putting tenants in!!!
Add tennants at 1% or more and do the Math!!!
OK, OK…I’ll do it for you in a real life scenario. 708 Vassar Ct. $130,000 Rents (both Sides total)=$1400=$16,800/yr
Appreciation at 8%=$10,400
20% down=$26,000
Mortgage=104,000@6.25%/30=$640.35/mo=$7684.20/yr
Taxes and insurance = ~$2533.02/yr
Total Static expenses=$10,217.22 Total Income Plus Appreciation = $27,200
Youve realized $16,982.78 in one year!!!
Cash on Cash=is over 25% with out apprecation (looking at it this way youd have over $40,000 equity in one year on a $26,000 investment that you pay back over 4 years)
*now in the real world you will have vacancy, and turnover cost, and management fees…I can help you break all this down. If your interested in learning more or working out a detailed scenario on ANY property give me a call at 979-255-2788 or visit me online at www.BuyAggieland.com
This is WAY outisde the scope of what I am willing to spend on a dog BUT I’ll spend that much and more for a new phone or camera… Guess it all depends on what is important to you.
Great article, Clay. How true that more and more people are spending large amounts on the family pet. This is a market that has grown considerably in recent years and shows signs of continued growth.
I don’t think we have spent that much on any single item but I would hate to think what we have sent over the years. We had a dog with bad hips a while back and my wife rat holed enough money for hip replacement. It was going to be over near $5000 at the time. He never got to the point that it was needed but I know it would have been spent if he ever did. He lived to be 14 1/2 with out the need for new hips but the money is still there for the next one.
Cute picture!!!!
I think JK is just for texting and im and maybe in the comments but generally in a blog post it’s better to use whole words in case somebody doesn’t understand.
I agree that it’s a good investment if you do it right – that’s the tricky part
Thanks, whole words widgets goblins and Meta Tags right???
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