Posted by Doug Pretorius on March 29, 2000 at 07:36:49:
I’ve always thought that a good way to go with a duplex might be to sell it to two couples or two friends (who you know) who are currently renting for close to what they could buy from you for. By my calculations that increases your cashflow to over $360/month (see payment below.)
Not bad! Especially when you consider that you don’t have any further obligation but to collect those payments.
This would remove you from the landlord business, but keep you in the game. You’d have no monthly costs (other than the gas to drive to your bank to deposit your cheque every month :)) you have much higher cash flow, and you will have helped two of your friends to buy their first home.
So lets look at the numbers: If those apts are renting for $500 and $600 respectively, and your friends are paying roughly that in rent. You could easily sell to them on a note for $1,000+/- and they would then be responsible for fixup and maintanence and so forth (they own it after all.)
If one of the friends wanted to move, the other could buy them out and rent the other unit, or sell to someone else (you perhaps?)
Good luck with your investing!