College Station Duplex – Good Investment or Bad?

Pebble Creek Update – August 2008
July 31, 2008
Horsing Around Again and Again
July 31, 2008

College Station Duplex – Good Investment or Bad?

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

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