For the rest of this week I am devoting my posts to rental property. I have been thinking that now would be the perfect time to buy a four family building for myself. Currently I have large house that I have been renting out. It’s a beautiful house, but much better suited for an owner than a renter. It requires more maintenance than one tenant justifies. I figure with a four family there is a much better economy of scale. With a four family there are only four exterior walls and one roof to maintain while collecting four total rents vs. a single family building with four walls, one roof and only one tenant.
In selling the current building and purchasing the new building I am using a 1031 exchange which will allow me to transfer all the profit from the first building into the second building without paying any capital gains taxes at this point in the game. Taxes will be due, of course, but it is a matter of time. In the meantime, I am doing the preliminary research.
3811 Fairview is one of my favorites. Currently the building is bringing in $1780 a month in rents. It has some updates and each unit is two bedroom so I think over time as each tenant moves out I will be able to do a little work and significantly increase the rent.
Since I am using a 1031 exchange, my hands are currently tied. So, if you are interested in purchasing a four family and would like to view 3811 Fairview or any other listing in the St Louis City area, give me a call and I will it open up for you.
Stay tuned: More multi-family investment opportunities to follow this week.