Buying a duplex in Madison? (Verona, Eagle: real estate, rental, mortgage)

[benzene5]

Hello all,
I am planning to go to graduate school at the University of Wisconsin-Madison next year and I was debating the possibility of buying a duplex (or triplex). I am going to be there for 5 or 6 years, so I am thinking it might be better to buy than rent, but I'm not really sure. I was thinking a duplex would be really nice becuase I could live in half, but rent out the other half to help pay for the mortgage. I don't know much about Madison, so I don't know if this is a good idea or not. Is there a lot of demand for rental properties or would it be big hassle to actually find someone to rent it? What areas of Madison would be best for this? Close to the university? Any suggestions would be great!

[Madtown RM]

How much do you have to spend? Duplexes can run about $150K each side and you have to put a good amount down these days with credit being so tight. There are cheaper ways to do it, namely by buying a multi-unit rather than a duplex. Duplexes are very much like a house and usually in pretty good demand. A multi-unit or income property may have 2-3 units (or more) so you could defray your mortgage with the rental income (note that more units lowers your risk if one or more units is vacant for a period). In my opinion, the closer you are to campus the easier multi-units are to rent out. Also, I would say that 5-6 years is a decent time frame but be aware that your investment could still go down. But buying in Madison now isn't a bad idea with prices having come down somewhat and mortgage rates at record lows. By the way, if you're looking for a really user-friendly search engine with all the bells & whistles, try googling Lake & City Homes.

Originally Posted by benzene5

Hello all,
I am planning to go to graduate school at the University of Wisconsin-Madison next year and I was debating the possibility of buying a duplex (or triplex). I am going to be there for 5 or 6 years, so I am thinking it might be better to buy than rent, but I'm not really sure. I was thinking a duplex would be really nice becuase I could live in half, but rent out the other half to help pay for the mortgage. I don't know much about Madison, so I don't know if this is a good idea or not. Is there a lot of demand for rental properties or would it be big hassle to actually find someone to rent it? What areas of Madison would be best for this? Close to the university? Any suggestions would be great!

[mommyntheoc]

I think it'd be a wise decision! What dept are you studying in? I'd suggest something on the SW side...the duplex prices are reasonable, it is mostly families, and they rent QUICKLY! Something near Verona, Mckee, or Gammon Rd.

[benzene5]

Under $200,000 would be ideal for me, but I could potentially go up to $275,000 especially if it is a multi-unit as you suggest. Is that a reasonable price range in Madison?

Originally Posted by mommyntheoc

I think it'd be a wise decision! What dept are you studying in? I'd suggest something on the SW side...the duplex prices are reasonable, it is mostly families, and they rent QUICKLY! Something near Verona, Mckee, or Gammon Rd.

Thanks for the suggestion. I'm interested in Medical Microbiology and Immunology. How much do you mean when you say reasonable?

[Megan1967]

Just to give you a little perspective housing prices here.

I live on the FAR east side (read cheaper real estate), by East Towne Mall. My little 3 bedroom 2 bath starter home (1370 sq feet) with a postage stamp sized lot is assessed at $192,500 (down from $197,000 ).

Five years ago I could have probably gotten $200,000 for it. Now I'm betting I could still get $190,000, of course I'm not even going to put it on the market in this climate.

[gold*dust1]

Originally Posted by Megan1967

Just to give you a little perspective housing prices here.

I live on the FAR east side (read cheaper real estate), by East Towne Mall. My little 3 bedroom 2 bath starter home (1370 sq feet) with a postage stamp sized lot is assessed at $192,500 (down from $197,000 ).

Five years ago I could have probably gotten $200,000 for it. Now I'm betting I could still get $190,000, of course I'm not even going to put it on the market in this climate.

That neighborhood is a mixed bag. We looked at one there last winter; 4 bdrm with a 10,000 sq foot lot and 2200 sq. feet. It was assessed at $275,000, listed at $254,000 and purchased for $235,000. It was nice inside, although it was torn up some from previous owners, but had all 6 panel doors etc. and a nice bonus room over the garage. Looked awfully generic on the outside though, like many do in Madison. The timing didn't work out for us, although we had our misgivings about the neighborhood in some respects, I could have been happy with it. There are also several, what look to be higher end homes, by Eagle Crest Drive.

[benzene5]

Just browsing the real estate in Madison, I've seen I couple of properties that looked interesting. For instance: 1315 E Mifflin St, Madison, WI, 53701 - MLS #1557100 - Multi-Family Home real estate - REALTOR.com®

I like the fact that it is a duplex so I could rent out half and live in the other half. Obviously it doesn't look spectacular or anything, but it looks alright. It seems like a good location to me, relatively close to the university, and well within my price range. I assume that is some problem that I am not not aware of though?

[gold*dust1]

Originally Posted by benzene5

Just browsing the real estate in Madison, I've seen I couple of properties that looked interesting. For instance: 1315 E Mifflin St, Madison, WI, 53701 - MLS #1557100 - Multi-Family Home real estate - REALTOR.com®

I like the fact that it is a duplex so I could rent out half and live in the other half. Obviously it doesn't look spectacular or anything, but it looks alright. It seems like a good location to me, relatively close to the university, and well within my price range. I assume that is some problem that I am not not aware of though?

There are no additional pictures of the inside. Just that you would have the maintenance on a 109 year old home and one of the units is 650 sq feet...kinda small but yeah good luck!