Multifamily Dwellings: Tips and Leads to Consider
While most people seem to prefer single-family units, one way to get your foot in the real estate door is to purchase a multi-family dwelling. If you have the down payment, but can’t quite swing the monthly payment, consider a duplex or triplex (or even larger). The rental income from the additional units is considered when qualifying for a loan (although that loan will cost you a bit more, given that it is income property). The cost of a duplex is usually not twice what a SFR would be, in fact it can be closer to 1.5 times what one would pay, depending on the area.
Over at i bought a duplex! blog, landlady offers some basic tips for buying a duplex. She also has a lot of posts with practical advice and shares her adventures in owning. You can check out the full blog post for an explanation of each item:
- Check out the neighbors
- Buy in an area that is on an upswing
- Try to stay away from things that are “weird”
- Look at houses in terms of what you can easily improve
- Be aware of what may need repairs
- Definitely, definitely get an inspector
- You can ask the current owner to make improvements
- Do some sleuthing
- …and some research, too
- Do some math
- Think about distance
- Consider the benefits of being an owner-occupant
I perused listings on the Peninsula, priced under $1.5mil, and found quite a few. Redwood City had, by far, the most with 27 for sale and many were on the west side in the Roosevelt or Palm Park neighborhoods. Three were located on Gordon Street, my old stomping grounds, which is a mix of single family, multi-family and apartment dwellings. Other cities had less to choose from in this price range, but some definitely worth considering. Here are some of the better choices on the Peninsula.
1123 Pine Street, Menlo Park
Duplex, $1,295,000
This property is located near Atherton, between El Camino and Middlefield. A mixed-use neighborhood, it is generally well-maintained and close to Caltrain. Very nice units (one 1BR, one 2BR), with updated kitchens with granite counters, designer colors. Monthly income is $6,100.
1708 Valota Road, Redwood City
Duplex, $888,000
Valota is a link between Jefferson and Woodside roads, so there is some traffic to contend with, but these are larger units, one being 3/2.5 and the other 2/1.5. Central to Woodside and Roosevelt plazas, access to 101 and 280 via Woodside Road.
328 Torino Drive, San Carlos
4 units w/garage, $1,225,000
Torino Drive is located in the San Carlos Hills, and leads into the desirable Devonshire Canyon. The street, only 2 blocks long, consists of apartments, condos/townhomes, and multi-family homes. It is a well-kept neighborhood, rental vacancies are rare, and is within walking distance to an elementary school and recreation complex (site of the old San Carlos High).
875 Laurel, Belmont
Triplex, $995,000
One 2-bedroom unit and two 1-bedroom units, with one garage space per unit. Located on the west side two blocks off El Camino and two blocks east of Ralston, near Caltrain and freeway access.
2235 Village Court, Belmont
4 units, $1,180,000
Village Court is near Carlmont Shopping Center, with easy access to freeways via Ralston Avenue. One- and two-bedroom units have been remodeled/upgraded, some have fireplaces, new roof. Each unit has a carport. Rents range between $925/mo and $1,225. Current monthly income is $4100.
1850 El Parque, San Mateo
4-plex $1,250,000
This unit is located on the Foster City side of 101, near Los Prados Park. On a cul-de-sac, there is one 1BR, two 2BR and one 3 BR unit. Income unknown.
1137 El Camino Real, Burlingame
5 units, $1,263,000
Located on a fairly busy street, near downtown at Broadway. Four of the units have two bedrooms (with 1 or 2 baths) and one unit is a studio. Current monthly income is $5775.
1648 Albermarle Way, Burlingame
Duplex, $1,289,000
Located on the west side, near good schools, both units are 2/1, with garage for both. New landscaping plus interior upgrades. Current rental income for both units is $4500.
