Is Buying a Triplex in Alameda a Smart Investment?
Taking this “active” property in Alameda as an example, 2135 Buena Vista Ave: It’s a triplex (has three units): one unit is vacant (for the future owner to occupy), and the other two units are tenant-occupied, which bring in $5,500. The property costs $1,600,000 With 20% down, an interest rate 6%, the approximate monthly mortgage (including taxes and insurance) would be $9,300. $9,300 - $5,500 = $3,800 So you are paying $3,800 while living in a 3 bed, 1 bath unit with your tenants who are helping you to buy this 1.6M home. Plus, the schools assigned for this home are Elementary - 8, Middle - 6, and High - 10. The “problem” with this approach: 1. You will have less privacy (it’s like living in a condo) 2. If you manage the tenants yourself, it can feel like a second job 3. If repairs arise, it will cost a lot (think about changing a roof for a huge house like this one) 4. Tenant laws - if you get a bad tenant, it’s just a headache However, if buying feels out of reach, this might be your way in.