Are you looking to RENT ?…

A New Home or Apartment?

Why you should consider a Duplex…

Pros and Cons Compared to Buying a Home

These are the Pros

  • Less Costs as upfront costs and maintenance is covered by your landlord.
  • Job mobility … when you need to move for a new job, it’s easier to relocate.
  • Your landlord takes care of unexpected repairs and maintenance.

These are the Cons

  • When you Rent, the home or apartment is not owned by you. 
  • Most of the time you have to ask for permission to change things about the rental property.
  • It’s often difficult to find a well maintained rental property available to rent.

Not many builders are building new rental properties in your area !

If you are looking for Rental Housing…

CALL US

346-237-9400 

 

Are you looking for Investment Real Estate?

 

We Build Duplexes !

Investment Opportunities Available

With over 40 years of experience in Construction, many years of experience in Duplex and Apartment Building, Management and Renovation of Large Apartment Communities. 

We have the experience needed to build new units and/or renovate Multi-family Units. 

Why Should You Invest in Duplexes

INSTEAD of SINGLE FAMLY HOMES !

REASON #1

More Doors = More $$$

When you invest in Single Family Homes, you have only ONE FRONT DOOR. If you have a vacancy you have $0 Income. 

With Duplexes, when you have A VACANCY your income Decreases by 50%. 

Which would you RATHER have?  $0 Income or 50% Less Income

REASON #2

Value

How Are Duplexes Valued vs How Are Single Family Homes Valued?

  1. The Value of a Single Family Home, is based on COMPS. This means a licensed Real Estate Appraiser, studies the local market and finds homes ‘similar’ to your home that sold recently, and COMPS  (compares) your home to the features of homes that recently sold in your neighborhood. 
    1. The Value is therefore, based on what other homes sold for. 
      1. REASONS OTHER HOMES SOLD – There can be many reasons 
        1. A job change – requiring a relocation. 
        2. A divorce
        3. A “Move-Up or Downsizing” of the family
        4. A Foreclosure
        5. A Death of the Owner

So as you can see… There are MANY Factors that can effect How and WHY a home that is going to be used as a COMP, effects the VALUE of Your Investment in a Single Family Home. 

BUT with a Duplex

The Value is BASED on INCOME…

Not What ‘Price Other Duplexes’… recently SOLD FOR !

Why is is GOOD FOR YOU?

  1. If you RAISE or INCREASE Rents… (Income)… YOUR VALUE GOES UP. 
  2. Very seldom… Does RENT ever GO DOWN. 
  3. You can make, very economical “Cosmetic” Improvements and Raise the RENT.
  4. When One Tenant MOVES OUT… You very easily… Can Raise the RENT.
  5. YOU can Raise thee RENT … Every Year if you want.

There are 2 Main Methods for evaluating a property using the income approach. 

  1. Gross Rent Multiplier (GRM)
  2. CAP Rate

GRM is calculated by by Multiplying the Annual Gross INCOME (not including vacancy or expenses) by the GRM (multiplier) that you are targeting. 

VALUE = GROSS Annual RENTS x AREA (or Desired) GRM.

EXAMPLES

Example 1.

A Duplex rents for $750 a month (per side) or $1,500 per month = $18,000 annual

Your investment strategy calls for a GRM of 7. 

$18,000 x 7 = $126,000 Value of the Duplex. 

BUT LETS SEE WHAT HAPPENS … IF the RENT is $1,000 per month (per unit)

Example 2. 

A Duplex rents for $1,000 a month (per side) or $2,000 per month = $24,000 annual

Your investment strategy calls for a GRM of 7. 

$24,000 x 7 = $168,000 Value of the Duplex.

A Difference in Value of $42,000 

So What … You Say…

Why is this important if … I am NOT planning to SELL the Duplex?

Answer: You have just increased your NET WORTH by $42,000. 

So when your Investment Property (Duplex) VALUE… can be INCREASED by raising the income, you are in MORE CONTROL of the VALUE of your rental portfolio than with a Single Family Home investment. 

Remember this is Only ONE Duplex…

What it this example happened and you had 10 Duplexes…

You would have increase NET WORTH of $420,000 (Almost 1/2 a Million Dollars). 

This is called EQUITY. You can BORROW on Equity. 

YOU can REFIANCE – Cash out some money and invest in MORE Duplexes. 

  1. Duplexes are Easy to BUY… Banks consider a DUPLEX a wise investment in Good Areas with Rental Demand. 
  2. Renters like Duplexes because a Duplex is more like a Home… than an apartment in a Large Multifamily Apartment Building with many families, large parking lots and other multifamily deficiencies.
  3. Duplexes typically have more LAWN… more area for children and families. Much like a single family home. 
  4. Some buyers of Duplexes, Live in one side, and have the income from the other side to help them with the monthly mortgage payment. 

DuplexBuilder.com

BY

Exuma Construction and Development LLC

For More Information on Building or Investing in Duplex and Multifamily Units

Call Today 346-237-9400

BUILT to RENT 

Why New Construction (BUILT TO RENT) is BETTER than Buying OLDER Single Family Homes

  1. NO Up-Front Renovation Costs.
  2. Faster RENT UP – you have “RENT READY” property as soon as the Duplex is completed and a Certificate of Occupancy is issued.
  3. No Surprises in costs … Renovation Budgets Blown or other unknow financials
  4. BETTER  RENTER Acceptance – newer style – clean as new construction
  5. Longer Occupancy – Tenants like New Units. 
  6. $0 or Very low maintenance costs as unit is new.
  7. Longer Depreciation Period. 
  8. Fixtures and Components like light fixtures and appliances can be matched to facility standard replacement or maintenance items to streamline your maintenance operations.

    We look forward to meeting with you and discussing how we might help you grow your Real Estate Investment Portfolio with New / No Maintenance Duplexes and Small Multifamily Rental Projects.

    Call Us Today 346-237-9400

    by Exuma Construction and Development LLC 

  9. 206 W. Monserattte          El Campo, TX 77437