The idea of an income property appeals to lots of real estate buyers. If you’re up for the challenge and responsibility, this investment can generate income and build your net worth more rapidly than a single-family property alone.
In today’s Splurge vs. Steal, we’re looking at two multi-family buildings in Dallas. Both are priced under a million dollars, which makes them somewhat rare in the market. There are pros and cons to each — which income property would you buy if you had the opportunity?
SPLURGE: CHARMED EIGHT-PLEX NEAR LAKEWOOD
Our splurge this week is the eight-plex at 5702 Victor St. in East Dallas’ Junius Heights neighborhood. Built in 1935, this property has original refinished hardwoods and super cute curb appeal. Located near Colombia Avenue and North Munger Boulevard, it offers close proximity to Lakewood shops and restaurants, as well as White Rock Lake and the Dallas Arboretum. Downtown Dallas is a 10-minute drive away.
Each of the eight units are separately metered for gas and electricity and the building has a new roof and fresh landscaping. With fresh paint, you’d get around $995 per unit. Update more extensively and achieve even higher rents.
This eight-plex was listed Jan. 5 by Alex Cleveland with Perry Guest Company for $995,000.
STEAL: NORTH OAK CLIFF FOUR-PLEX NEAR BISHOP ARTS
The four-plex at 422 N. Marsalis Ave. looks a little rough around the edges, but with development in this area, it’s clearly up and coming and most of the value is in the land. In 2013, the building got new downstairs windows, electrical, plumbing, roof, and HVAC. Located near East 8th Street and East Jefferson Boulevard in the Oak Cliff Original neighborhood, the 1947 property is two blocks from Lake Cliff Park and about 10 blocks from the Bishop Arts District.
All four units in our steal are currently leased to families who want to stay. The tenants are all paying below market value for the area, which ranges from $800 to $925 per month, says listing agent Stevie Chaddick with Virginia Cook Realtors. Each unit is 950 square feet with one bedroom and one bathroom. The downstairs units are all electric and upstairs are all gas and every apartment has washer-dryer connections and a refrigerator. There are eight parking spaces on the east side of the building.
This four-plex was listed Feb. 5 by Chaddick for $565,000.