Latest / Own More Doors / #39 Duplex & Triplex Market Update | Trends, Prices, & Financing Insights

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#39 Duplex & Triplex Market Update | Trends, Prices, & Financing Insights · Own More Doors

• 0:00
  SPEAKER_00: What's up, everyone?
• 0:01
  SPEAKER_00: Juan Weizar here with the Own More Doors podcast.
• 0:04
  SPEAKER_00: This specific episode was first shared on our YouTube channel, Sage Real Estate.
• 0:08
  SPEAKER_00: Check it out.
• 0:09
  SPEAKER_00: And we're excited to bring it to you here.
• 0:11
  SPEAKER_00: It's Juan Weizar with another Own More Doors podcast.
• 0:15
  SPEAKER_00: I'm super excited to be coming to you here in February.
• 0:19
  SPEAKER_00: And I'm really excited.
• 0:20
  SPEAKER_00: I brought one of the agents here at our office, one of our multifamily specialists, Ann Tay, to join us today.
• 0:26
  SPEAKER_00: We're going to be talking about the duplex, triplex market here in Long Beach trends, financing, what's happening.
• 0:32
  SPEAKER_00: We're going to follow her journey.
• 0:34
  SPEAKER_00: She's owned uh properties throughout the years.
• 0:36
  SPEAKER_00: That's in fact how I know her.
• 0:38
  SPEAKER_00: But she's also buying her first duplex.
• 0:40
  SPEAKER_00: And so we're going to get into that as well.
• 0:41
  SPEAKER_00: So, Anne, thank you for being here today.
• 0:44
  SPEAKER_01: Thank you, Juan.
• 0:45
  SPEAKER_01: Happy to be here.
• 0:45
  SPEAKER_00: Awesome.
• 0:46
  SPEAKER_00: So let's just get into it.
• 0:47
  SPEAKER_00: Um, how, okay, Anne, someone comes to you and says, How's how's the market?
• 0:55
  SPEAKER_00: And you might say, Oh, well, let's talk about, listen, and I always tell people when people talk about how's the market, there's so many different things, right?
• 1:02
  SPEAKER_00: There's self-storage, there's office, there's medical office, there's there's industrial.
• 1:06
  SPEAKER_00: Today we're going to be talking about the duplex, triplex market.
• 1:09
  SPEAKER_00: So, Anne, someone comes to you and says, I want to buy a small income property, how's the market?
• 1:15
  SPEAKER_00: What's your response?
• 1:17
  SPEAKER_01: Well, I would tell them, you know, we're in February now.
• 1:20
  SPEAKER_01: So it's great that we can gather data from the previous year in 2024 and go off from there.
• 1:26
  SPEAKER_01: And so what the trends have looked out prior to that as well.
• 1:29
  SPEAKER_01: So starting with 2024, we sold in Long Beach 114 duplexes.
• 1:36
  SPEAKER_00: So, okay, so so in 2024, you said 114.
• 1:41
  SPEAKER_01: 114, yes.
• 1:42
  SPEAKER_00: So let me give this perspective.
• 1:43
  SPEAKER_00: So in 2024, there was like uh maybe 43 forplexes that sold.
• 1:53
  SPEAKER_00: So I'm saying that there's a lot more duplexes that that traded in Long Beach.
• 1:57
  SPEAKER_00: But but just so you know, for anyone listening, we in Long Beach have a lot of fourplexes.
• 2:03
  SPEAKER_00: We have way more duplexes.
• 2:07
  SPEAKER_00: And how many duplexes do we have in Long Beach?
• 2:10
  SPEAKER_01: We have 7,373 duplexes.
• 2:14
  SPEAKER_00: Wow.
• 2:14
  SPEAKER_00: Okay.
• 2:14
  SPEAKER_00: Wait, and just so that anyone, you know, just for perspective, there's there's 2,600 forplexes.
• 2:20
  SPEAKER_00: Okay, so there's a lot more duplexes out there.
• 2:22
  SPEAKER_00: And so in 2024, we had 114 sales.
• 2:25
  SPEAKER_00: What did we have the year before?
• 2:27
  SPEAKER_01: We had 101 sold the year before.
• 2:30
  SPEAKER_00: Okay, so then market trend would be up, uh, which is which is good.
• 2:35
  SPEAKER_00: And um, why do why would you think that is, Anne?
• 2:38
  SPEAKER_00: Like, like why in 2024 will there be more sales than in the prior year?
• 2:44
  SPEAKER_01: I think people are now looking into um having some versatility into their properties.
• 2:49
  SPEAKER_01: And so, you know, we're we're finding that not only looking at single family homes, but opening up their options for duplexes because you have yet another unit that you can utilize.
• 3:00
  SPEAKER_01: And so I think the other piece too is that there's more awareness that duplexes do exist and they are affordable.
• 3:07
  SPEAKER_01: So I think um people just know more that there are more options out there.
• 3:14
  SPEAKER_00: Could it could it be that maybe, and and I guess this is where I want to get into next, could it be that maybe in 2024 we had we we had a price dip in the duplex, and maybe that's what drove it up?
• 3:26
  SPEAKER_01: Um actually we had a price increase in 2024.
• 3:30
  SPEAKER_01: So we had actually let's start back to 2022.
• 3:34
  SPEAKER_01: And so, as we know, back in 2022 is when um there was a market frenzy, not only in the single family housing market, but also in the multifamily market.
• 3:44
  SPEAKER_01: And the reason for that is because we had relatively low interest rates at that time.
• 3:50
  SPEAKER_01: And we know that back in the pandemic times, we had historically low interest rates in like the two and three percent, and it started to rise, and it started to rise more in 2022 to 5%.
• 4:00
  SPEAKER_01: So people started to want to um join the um ownership of property, taking advantage of the lower percentage without it going much higher.
• 4:12
  SPEAKER_01: And so 2022 was when duplexes were selling a lot higher.
• 4:17
  SPEAKER_01: The average price in 2022 was$1,160,000, and then there took a dip in 2023 because interest rates started to rise.
• 4:31
  SPEAKER_01: And so the average price in 2023 is 1.044.
• 4:39
  SPEAKER_01: And coming into 2024, uh prices are starting to rise again, and so we're out very, very similar 1.064 average.
• 4:51
  SPEAKER_00: So a slight increase from the year before.
• 4:54
  SPEAKER_00: Sales are up, prices are slightly up.
• 4:56
  SPEAKER_00: And when someone looks at a duplex, you know, are they thinking living in one, renting the other?
• 5:05
  SPEAKER_00: Are they thinking investment?
• 5:08
  SPEAKER_00: Um, and are they even factoring in metrics that we use with other property, gross gross, gross rent multiplier, cap rate, like like are they factoring that stuff in or not as much?
• 5:20
  SPEAKER_01: In the duplex market, not as much.
• 5:23
  SPEAKER_01: Oftentimes it's used as an owner-occupied unit.
• 5:27
  SPEAKER_01: Of course, you can still buy it as an investment property, but you know, those who may want to offset their mortgage and yet live in another, um, that would be a good option for duplexes.
• 5:37
  SPEAKER_01: And so we don't usually look at cap rates or gross rent uh multiplier.
• 5:44
  SPEAKER_00: I would say that most people it can be factored in, um, but the primarily that's probably not the reason why they're buying it.
• 5:53
  SPEAKER_00: Where, you know, especially with a with a duplex or and and for anyone listening, when we're saying duplex, this could be two homes on a lot, two properties.
• 6:03
  SPEAKER_00: I mean, it could even be a single family home with an ADU.
• 6:07
  SPEAKER_00: Uh the fact that they're calling it an accessory dwelling unit to me, it's still a structure, uh an independent structure on its own.
• 6:14
  SPEAKER_00: It's gonna rent out, so it's not, you know, like we're gonna lump all those in in into one.
• 6:19
  SPEAKER_00: When we list properties, one of the most important things that people ask is uh, how long is it gonna take to sell my property?
• 6:25
  SPEAKER_00: So on average, what did you find out um through the years with the with duplexes?
• 6:31
  SPEAKER_01: So we'll look at days per on market, and um, you know, just in 2024, the average days on market is 45 days.
• 6:42
  SPEAKER_00: Okay.
• 6:42
  SPEAKER_01: And in 2023, it was actually 60 days.
• 6:46
  SPEAKER_01: So we can see that properties are moving faster off the market.
• 6:50
  SPEAKER_01: There's more demand, despite the higher prices.
• 6:54
  SPEAKER_00: Yeah, so there's more sales, they're moving faster, and the prices are up.
• 6:57
  SPEAKER_00: So, like if someone were to say, how's the duplex market?
• 7:01
  SPEAKER_00: I would say those three things, which is very promising for for a for an owner or a potential seller.
• 7:09
  SPEAKER_01: And one thing I want to add too is oftentimes people may think duplexes are more expensive than single family homes.
• 7:16
  SPEAKER_01: And what I found was that 25% sold in 2024, which is 29 properties, were sold between the price of 700,000 and 800,000.
• 7:25
  SPEAKER_01: And I think that would be a pretty reasonable price for not only an investment property, but also uh owner occupied.
• 7:33
  SPEAKER_00: I mean, at that price range, I would think that that might be the median home price.
• 7:37
  SPEAKER_00: Right.
• 7:37
  SPEAKER_00: Right.
• 7:38
  SPEAKER_00: Right.
• 7:38
  SPEAKER_00: And what you're saying is that you could get what you're saying is that it's it's on the low end, you could get a duplex in the sevens and eights.
• 7:46
  SPEAKER_01: That's what is majority sold.
• 7:48
  SPEAKER_01: On the low end, you can actually get a duplex in the 600s.
• 7:51
  SPEAKER_00: Okay, so you've seen one go that low.
• 7:53
  SPEAKER_01: Yes, yes.
• 7:54
  SPEAKER_00: Um, one of the other benefits of a duplex property is that it legitimately quali qualifies for the FHA loan without meeting the self-sufficiency test.
• 8:04
  SPEAKER_01: Right.
• 8:04
  SPEAKER_00: So a lot of times people will contact us and they want to go down the FHA route.
• 8:09
  SPEAKER_00: And then we have to tell them, well, how many units are you trying to buy?
• 8:12
  SPEAKER_00: And sometimes we'll have to divert them over to over to Fannie Mae type loans because there's a thing called the self-sufficiency test that applies to three and four unit buildings.
• 8:22
  SPEAKER_00: But we remind them, hey, we know you want three or four, but you have to meet this test.
• 8:28
  SPEAKER_00: The do in the duplex world, you don't have to meet the test, which I think is right.
• 8:33
  SPEAKER_01: Right.
• 8:33
  SPEAKER_01: You can take advantage of the low down payments that FHA allows for, which is 3.5%, and which is the lowest you can go, and still finance your property off of the FHA loan without having to meet the self-sufficiency test.
• 8:48
  SPEAKER_01: And for those who may not know what the self-sufficiency test is, it does have to apply to triplexes and quads, like you mentioned.
• 8:55
  SPEAKER_01: So what they do is that there is an appraiser that is FHA approved, and the FHA appraiser comes into our property.
• 9:03
  SPEAKER_01: And they're gonna look at what is the market rent for each of the units.
• 9:08
  SPEAKER_00: So not exactly what is it, what's the rent role or what it's collected today.
• 9:13
  SPEAKER_00: It's it's what it could collect, right?
• 9:15
  SPEAKER_01: What it could collect, the potential rent for each unit.
• 9:18
  SPEAKER_00: Right.
• 9:19
  SPEAKER_01: And they're going to add up the rent for the whole property, and they're gonna give you 75% of that amount.
• 9:28
  SPEAKER_01: And that 75% has to cover what we would say are the the PTI of the property.
• 9:38
  SPEAKER_00: Yeah, the P ITI, yeah.
• 9:39
  SPEAKER_01: P I T I.
• 9:41
  SPEAKER_01: So um the mortgage taxes and insurance.
• 9:44
  SPEAKER_01: And if you have mortgage insurance, if you're putting a low-down payment, you'll have it.
• 9:48
  SPEAKER_01: Um, if you put a down payment both below 20%, you have mortgage insurance too.
• 9:53
  SPEAKER_01: So that 75% of your rent that you could collect needs to cover um these expenses.
• 10:00
  SPEAKER_00: Right, right.
• 10:01
  SPEAKER_00: And and so at the and so what we're saying is at the duplex level for anyone who's getting started, uh minimal down payment, FHA available, and you don't have to meet the self-sufficiency test.
• 10:14
  SPEAKER_00: But we'll worry about this for you.
• 10:15
  SPEAKER_00: I mean, we're just you know giving you advice now, but if you were to reach out uh to Anne, you know, she would, you know, she would know this.
• 10:22
  SPEAKER_00: And so we don't and we're not asking you guys to memorize it, but just it's important to kind of note that the barrier to entry for the duplex is much lower when it comes to FHA financing.
• 10:34
  SPEAKER_00: Um if you're working with a buyer right now, how many the duplex properties are there on the market in Long Beach?
• 10:41
  SPEAKER_01: There are 38 duplexes on the market right now in Long Beach.
• 10:46
  SPEAKER_00: How many triplexes are there on the market?
• 10:48
  SPEAKER_01: There are 26.
• 10:49
  SPEAKER_00: Okay.
• 10:50
  SPEAKER_00: Um, speaking of triplex, let's let's switch off to there.
• 10:55
  SPEAKER_00: Let us know pricing, sales, days on market, and you know, we'll kind of compare and contrast how they've been doing through the years and then also see uh if it's more beneficial for someone to to pursue them over a duplex.
• 11:08
  SPEAKER_01: Sure.
• 11:09
  SPEAKER_01: So triplex market, um, there's a lot less inventory.
• 11:12
  SPEAKER_01: There's 2,077 triplexes in Long Beach.
• 11:16
  SPEAKER_00: Okay.
• 11:17
  SPEAKER_01: And in 2024, 36 sold.
• 11:20
  SPEAKER_01: So very different than your duplex market.
• 11:24
  SPEAKER_01: The average sale price is similar.
• 11:26
  SPEAKER_01: It's 1,143,000 and the average days on market is 45 days.
• 11:32
  SPEAKER_00: Okay.
• 11:33
  SPEAKER_00: You know, it's really similar to the fourplex market.
• 11:36
  SPEAKER_00: You know, the fourplex has 2600 forplexes, and then the average sales price is around 1.3 million.
• 11:43
  SPEAKER_00: So I mean, I I know triplex are less, but which I would expect them to be less, but it's and then the amount of sales, it's actually really similar to how the fourplex market is performing.
• 11:54
  SPEAKER_00: Interesting.
• 11:54
  SPEAKER_01: Right, right.
• 11:55
  SPEAKER_01: And the entry point is um similar to a duplex as well.
• 12:00
  SPEAKER_01: And so we have seen triplexes sold in the 700s, and the majority of them are selling actually between 800 to 900,000.
• 12:09
  SPEAKER_01: 30% in 2024 are sold in that range.
• 12:12
  SPEAKER_00: Let me do a shameless plug right now.
• 12:14
  SPEAKER_00: We have 2485 Pasadena on the on the market for$799,000.
• 12:19
  SPEAKER_00: That's the three units.
• 12:20
  SPEAKER_00: And we also have one, um, I think it's$14.78 Linden, and and it's a new listing.
• 12:26
  SPEAKER_00: We're asking$895,000.
• 12:27
  SPEAKER_00: So it's we're within the range of where they typically trade.
• 12:31
  SPEAKER_01: Right, right.
• 12:32
  SPEAKER_01: Exactly.
• 12:34
  SPEAKER_00: Um, how um are prices up and are sales up in the triplex as well, like they are with the duplex?
• 12:42
  SPEAKER_01: Prices are settling, um, trending down, actually.
• 12:47
  SPEAKER_01: So in the triplex market.
• 12:48
  SPEAKER_01: In the triplex market, yes.
• 12:50
  SPEAKER_01: So in 2023, there's um a slight trend down.
• 12:54
  SPEAKER_01: The average was 1.164, and in 2022 hit its highest at 1.28.
• 13:02
  SPEAKER_01: And so we're we're having a slight decrease in the triplex market.
• 13:06
  SPEAKER_00: Um in terms of sales, you're saying in terms of no in terms of sales price, right?
• 13:10
  SPEAKER_00: Exactly.
• 13:11
  SPEAKER_00: And then overall sales?
• 13:13
  SPEAKER_01: Overall sales have actually increased.
• 13:17
  SPEAKER_01: So 25 sold in 2022, 27 in 2023, and then 36 in the last year.
• 13:25
  SPEAKER_01: Okay.
• 13:27
  SPEAKER_00: Yeah, and I'm wondering, I I would think in this case that maybe the price dip maybe got people off the market.
• 13:33
  SPEAKER_00: And I think to your point to what you said earlier, you know, oftentimes we'll look at a, you know, your single family home in Long Beach, let's just say it's$850,000.
• 13:45
  SPEAKER_00: But you just finished telling me that most triplexes sell in the eights and nines.
• 13:51
  SPEAKER_00: Right.
• 13:51
  SPEAKER_00: And so for a lot of people, if I'm just curious if there's a lot of people who I get it.
• 13:56
  SPEAKER_00: At first, your goal is single family home, but you're thinking for the same price of a single family home, I could get two additional units to help offset the mortgage.
• 14:05
  SPEAKER_00: I'm wondering if that's some of the drive or push.
• 14:08
  SPEAKER_00: It's just, it's just that our cost of living is high.
• 14:10
  SPEAKER_01: Right.
• 14:11
  SPEAKER_01: And so I I agree.
• 14:12
  SPEAKER_01: I think that um it is a smart move to purchase a duplex and a triplex and be owner-occupied for one of them.
• 14:21
  SPEAKER_01: So you could take advantage of the financing behind owner-occupied loans, but also have the rents offset part of your mortgage.
• 14:29
  SPEAKER_01: And so um that helps with not only um having more money in your pocket, but also you could sit on the appreciation of the property as well, just like you would for single-family homes.
• 14:42
  SPEAKER_01: And I think that would be helpful for those who may not want a forever home, may not want to live forever in the duplex or triplex and eventually buy their dream home in the future, they can always leverage their investment property and do so.
• 14:56
  SPEAKER_00: No, you're right.
• 14:57
  SPEAKER_00: I mean, no one moves into their dream home right off the bat.
• 15:01
  SPEAKER_00: And sometimes we need baby steps, you know.
• 15:03
  SPEAKER_00: And when I first got started, and listen, similar to you, I mean, I know your story as well, is I went through a lot of condominiums before I ever landed in my first house.
• 15:11
  SPEAKER_00: And I know that you could, you know, right, stay the same.
• 15:15
  SPEAKER_00: Yes.
• 15:15
  SPEAKER_00: Um, okay, hey, so let's move on to interest rates.
• 15:21
  SPEAKER_00: Where are interest rates now that you're you that you're seeing?
• 15:25
  SPEAKER_00: And let's also talk about your purchase that you're going through now.
• 15:30
  SPEAKER_01: Sure.
• 15:30
  SPEAKER_01: So interest rates right now are really falling between 6.9 and 7%.
• 15:36
  SPEAKER_01: Um, that's for owner-occupied properties.
• 15:40
  SPEAKER_01: Uh, we're looking more at 7.5% for in an investment uh loan.
• 15:46
  SPEAKER_01: And so um they're setting out, you know, I don't think that there's gonna be much changes in the coming months.
• 15:54
  SPEAKER_01: And so um, for me, when I purchase my, well, I'm in escrow now.
• 15:59
  SPEAKER_01: And so we're gonna close this week.
• 16:01
  SPEAKER_00: Congratulations.
• 16:02
  SPEAKER_01: Oh, thank you.
• 16:03
  SPEAKER_01: Yes, I'm super excited.
• 16:05
  SPEAKER_01: Um, and it is a 1963 um built duplex that is an architectural um work of art.
• 16:15
  SPEAKER_01: It was designed by Clipton Jones Jr.
• 16:18
  SPEAKER_01: Um back in the 60s.
• 16:20
  SPEAKER_01: And in that particular area, he designed quite a few duplexes in like what we call the Los Ceridos Circle in Bixby Nose.
• 16:28
  SPEAKER_01: And so um we're closing this week and I'm excited to move in.
• 16:33
  SPEAKER_01: Um, there's a tenant in place, so that helps offset the mortgage already.
• 16:38
  SPEAKER_01: Or I'm, you know, moving in with the tenant in place.
• 16:41
  SPEAKER_01: So that also helps me with qualifying for the loan altogether.
• 16:46
  SPEAKER_00: And is what the tenant is paying.
• 16:50
  SPEAKER_00: You know, when you said that that that you're moving in with a tenant in place, these are two separate dwellings.
• 16:55
  SPEAKER_00: And so what she means is that one of the dwellings is is being occupied.
• 16:59
  SPEAKER_00: But yes, um are are what they or what they're paying, were were you okay with their current rent?
• 17:07
  SPEAKER_01: Their current rent is slightly under market, um, however, it could catch up um by uh one rent increase, essentially.
• 17:17
  SPEAKER_01: And so right now the you know, the rent laws would allow for 8.9% of a rent increase.
• 17:25
  SPEAKER_01: And so, you know, it could just be one increase.
• 17:29
  SPEAKER_00: And did you did the owner also live there?
• 17:32
  SPEAKER_01: The owner did not live there.
• 17:34
  SPEAKER_00: All right, so let me so let me just mention something that's kind of important.
• 17:37
  SPEAKER_00: So uh kind of an interesting thing.
• 17:40
  SPEAKER_00: The the duplex that Anne is buying right now, because the owner did not live there, it made it subject to rent control laws.
• 17:50
  SPEAKER_00: Now Anne is gonna be moving in, which which will then make it not subject to rent control laws, which is which is a benefit because it's a duplex that you live in is is not subject to rent control.
• 18:01
  SPEAKER_00: So that that'll be an interesting thing.
• 18:03
  SPEAKER_00: Um, and you know, a lot of the objections that we get that you get working with a lot of buyers like you do, they're gonna say, I don't want to buy right now because prices are high and interest rates are high.
• 18:17
  SPEAKER_00: But Anne, you know what you're doing.
• 18:19
  SPEAKER_00: You're a professional, you've owned a you know several properties before.
• 18:23
  SPEAKER_00: You've bought, you've sold, you've invested.
• 18:25
  SPEAKER_00: Why are you buying?
• 18:28
  SPEAKER_01: I'm buying for um two reasons.
• 18:31
  SPEAKER_01: Um, personal reasons always really come as priority, you know.
• 18:35
  SPEAKER_01: And so that's one of just wanting to have a uh multifamily home for myself, as we're in that multifamily home market.
• 18:43
  SPEAKER_01: And so that's one.
• 18:45
  SPEAKER_01: The secondary reason is that, you know, owning and and selling, you know, throughout the times I've had property, I've always my property is always appreciated.
• 18:56
  SPEAKER_01: And I've always had more cash on hand to then purchase a bigger and better unit in the future.
• 19:02
  SPEAKER_01: And so I think, you know, it really just depends on if you're able to buy, buy now because prices will only go up.
• 19:14
  SPEAKER_01: And if you can't afford the interest rates at the moment, they're not that terrible.
• 19:19
  SPEAKER_01: They can't be affordable, particularly if you have rent offsetting part of your mortgage, it would be a good investment decision to go ahead and buy now.
• 19:31
  SPEAKER_00: And um, walk us through your process.
• 19:33
  SPEAKER_00: How many, how many offers did you put in before getting an accepted offer?
• 19:36
  SPEAKER_00: Like how competitive is that out there for people?
• 19:39
  SPEAKER_01: Um, I started shopping for a duplex and triplex back in summer of 2024.
• 19:48
  SPEAKER_01: So it took me about six months to identify like the one.
• 19:52
  SPEAKER_01: I did put in two other offers in the past, and essentially they were just, I would just outbid.
• 19:58
  SPEAKER_01: And so there is competition out there.
• 20:00
  SPEAKER_01: People are looking.
• 20:01
  SPEAKER_01: If it's priced right, if it's in the good location, it's gonna move fast off the market.
• 20:06
  SPEAKER_01: The two that I was going for were left the market within the week.
• 20:10
  SPEAKER_00: Yeah.
• 20:11
  SPEAKER_01: And this particular one has been sitting on the market for over 100 days, and I've always kept my eye on it because it was um what I dreamt of moving into, actually.
• 20:24
  SPEAKER_01: I just didn't realize that I can afford it.
• 20:26
  SPEAKER_01: Um, so with some negotiations with the selling agent, I um, or the seller agent, excuse me.
• 20:36
  SPEAKER_01: Um, I was able to come in and the price that I'm comfortable with.
• 20:39
  SPEAKER_01: And um we're gonna close this week.
• 20:42
  SPEAKER_00: So and you're you're buying um you're buying this property.
• 20:48
  SPEAKER_00: Um are you nervous?
• 20:52
  SPEAKER_01: I am not nervous.
• 20:55
  SPEAKER_01: I am excited, and so um, I'm not nervous because I've already worked out uh my finances to afford it.
• 21:05
  SPEAKER_01: And um the tenant in place, I've met him, and he is a long-term tenant, and I'm happy to have him um still continue for his tenancy there.
• 21:17
  SPEAKER_01: And so, you know, truly it's it's I'm excited to move in, start a new space um in what I always um admire, which is the Miss Century Modern style.
• 21:29
  SPEAKER_00: Awesome.
• 21:30
  SPEAKER_00: You know, the the one thing that I like here, folks, is anyone who um who is working here with us at Sage Real Estate as a multifamily specialist, is everyone is an investor first.
• 21:42
  SPEAKER_00: And so, you know, I I like to tell people, I mean, listen, as cheesy as it sounds, like we don't just talk the talk like we're walking the walk.
• 21:49
  SPEAKER_00: I mean, if if you're gonna be working with Anne, and I hope you do, she's going through the process right now.
• 21:55
  SPEAKER_00: It's it's February 2025, and she's she's buying now, she's getting an interest.
• 22:00
  SPEAKER_00: Rate probably in the sevens.
• 22:01
  SPEAKER_00: I'm I'm sure she was able to maybe buy down that rate.
• 22:03
  SPEAKER_00: And um, but but you're gonna be guided by someone who is actually doing it, someone who has tenants, someone who's going through the process now, not 10 years ago or maybe never.
• 22:14
  SPEAKER_00: And so, um, and tell us about the importance of, you know, for someone who's looking into buying a multi-dwelling unit, listen, I know a lot of realtors and they're gonna say, Oh, I could help you buy a duplex, I could help you buy a triplex, I could help you buy a fourplex, but traditionally they specialize in single-family homes.
• 22:33
  SPEAKER_00: I mean, are they the best fit?
• 22:34
  SPEAKER_00: Or like what kind of advice do you give someone who says, hey, I want to buy small income-producing property, like what agent should I go for?
• 22:42
  SPEAKER_00: What should they be looking for, Ann?
• 22:44
  SPEAKER_01: If you're looking for a multifamily home, you will really, you really should be working with a multifamily agent.
• 22:50
  SPEAKER_01: And for met for several reasons.
• 22:52
  SPEAKER_01: One mainly is that we know what to look for in terms of analyzing a property.
• 22:58
  SPEAKER_01: And we know the trends in the past years of how it would expect to appreciate, and when should you have your return and investment, essentially.
• 23:08
  SPEAKER_01: So, all investments, you want to know what your end game looks like and your return.
• 23:13
  SPEAKER_01: So that's one piece of um, or one reason to work with the multifamily agent.
• 23:19
  SPEAKER_01: Another is really how to deal with tenants.
• 23:21
  SPEAKER_01: And so that's a whole other entity that is completely different than single family homes.
• 23:27
  SPEAKER_01: You have a space to have tenants and knowing the laws behind tenancy, um, knowing what to expect during escrow and what to ask for so that you are well aware of the actual history of the tenancy and what you're buying into.
• 23:45
  SPEAKER_01: Because part of buying a multifamily home is not only the property itself, you also are buying the business and the income stream that comes with it.
• 23:53
  SPEAKER_01: And so it's important to be able to analyze and be comfortable and be informed in the decision you're gonna make when you buy a multifamily home, particularly when you're dealing with tenants in place.
• 24:04
  SPEAKER_00: You know, and you'd be surprised how many times people call me and say, on my own listings, they'll ask the question, are those subject to rent control?
• 24:15
  SPEAKER_00: These are realtors asking me if in Long Beach they're subject to rent control.
• 24:19
  SPEAKER_00: I'm like, have you heard of statewide rent control?
• 24:22
  SPEAKER_00: Did you not know about, you know, um, which is which is just crazy.
• 24:26
  SPEAKER_00: So it's like not just because you're licensed real estate agent doesn't mean you know state laws.
• 24:31
  SPEAKER_00: And to your point, more now than ever, knowing how to deal with the tenants and and the do's and don'ts are critically important because a lot of realtors out there think that you could just give someone a 30-day notice and they have to move, and they're shocked when I tell them that that's not the way it works.
• 24:45
  SPEAKER_00: That they don't know about the substantial renovation, they don't know cash for keys.
• 24:50
  SPEAKER_00: Um, it's surprising how they might be really good at selling houses.
• 24:54
  SPEAKER_00: I'm not taking that away from them, but they do not know how to deal with tenants.
• 24:58
  SPEAKER_00: And that's why I think it's critically important that you're working with someone um who specializes in this and and and um you know, and this is why I'm having you here today, and is just to kind of talk about what you're seeing with being boots on the ground at this level.
• 25:14
  SPEAKER_00: One other thing, too, is I'll get sometimes I'll get buyers who contact me through the YouTube channel or our podcast channel, and they'll say, Hey, I'm I'm in Huntington Beach and I'm submitting offers with my agent, but uh he doesn't know cap rate or gross rent multipliers.
• 25:28
  SPEAKER_00: And I saw your video and I'm like, hey, that's your agent's job.
• 25:31
  SPEAKER_00: And if they don't know how to do that, you're working with the wrong agent.
• 25:34
  SPEAKER_00: If they can't help you, you you chose the wrong person.
• 25:38
  SPEAKER_00: Right.
• 25:39
  SPEAKER_00: And I and Anne, I I this happens so often where they're like, Well, can you help me analyze it?
• 25:44
  SPEAKER_00: I'm like, that's your agent's job.
• 25:45
  SPEAKER_00: And if you wanted us to help, you should have signed on with us, you know.
• 25:49
  SPEAKER_00: And so um, um, Ann, um let's let's talk about your background.
• 25:56
  SPEAKER_01: Oh, sure.
• 25:57
  SPEAKER_00: Tell us about me.
• 26:00
  SPEAKER_00: What makes Anne unique?
• 26:03
  SPEAKER_01: Um, so I originally started in um the healthcare field, actually.
• 26:08
  SPEAKER_01: And so I am a dietitian, still a dietitian today, and I've been in that field for 14 years now.
• 26:18
  SPEAKER_01: And so um my specialty was in kinny kidney um health.
• 26:23
  SPEAKER_01: And um I decided to go into real estate because um I felt like I needed to be part of the community more than I was as a dietitian, although that has its own um gratifications too.
• 26:36
  SPEAKER_01: And I saw a little parallels between the two fields.
• 26:40
  SPEAKER_01: Um, one is that when you make a big decision, whether it be in healthcare or whether it be buying a house or selling a house or multifamily home, um, you want to be informed.
• 26:53
  SPEAKER_01: And so part of that role of an educator and also taking you through the journey of making the decisions were the parallels I saw in both these fields and I that I thoroughly enjoy doing and helping people meet the goals at hand, whether it be in their healthcare goals or whether it be in their property investment goals.
• 27:18
  SPEAKER_01: Um, so that's that's my background.
• 27:21
  SPEAKER_01: And I actually started to invest um about 10 years ago with you, Juan, actually, and that's how we met.
• 27:29
  SPEAKER_01: And I started off in the condo world, like you mentioned.
• 27:31
  SPEAKER_01: And so um owning a condo and then selling again after about five years, um, had a small appreciation that was back in Orange County, then bought a condo in downtown Long Beach.
• 27:43
  SPEAKER_01: Um, and that appreciated very nicely um in seven years, and so uh that was able to give me enough cash on hand to buy my first investment property, which is a duplex that um that'll be closing this week.
• 28:00
  SPEAKER_00: And tell tell us about your upbringing.
• 28:02
  SPEAKER_00: Where'd you grow up?
• 28:03
  SPEAKER_00: Where'd you go to high school?
• 28:04
  SPEAKER_00: Where'd you go to college and any sports that you're into?
• 28:07
  SPEAKER_01: Way back when.
• 28:08
  SPEAKER_00: Yeah.
• 28:09
  SPEAKER_01: Okay, so I'm actually born and raised in Long Beach.
• 28:11
  SPEAKER_01: And so I love this city.
• 28:13
  SPEAKER_01: I've uh plan to stay in this city, and I went to Long Beach, Jordan High School, and um also Cal State Long Beach.
• 28:23
  SPEAKER_01: And so very much um grew up here and been a Long Beach resident through and through.
• 28:30
  SPEAKER_01: Uh sports-wise, I mean, I used to play tennis.
• 28:35
  SPEAKER_01: I used to be on the tennis team in tenant in um high school.
• 28:39
  SPEAKER_01: Um, but right now I don't think I can call myself an athlete.
• 28:43
  SPEAKER_00: And so what do you do for fun?
• 28:46
  SPEAKER_01: Um, I have a dog.
• 28:48
  SPEAKER_01: His name is Teddy, he's a pit bull, and so uh we hang out um often.
• 28:54
  SPEAKER_01: I like to take Teddy into different parks around Long Beach and explore different neighborhoods.
• 28:59
  SPEAKER_01: Um and also um love dining in not only Long Beach, but in around the cities, of course, of Long Beach too.
• 29:07
  SPEAKER_01: And so friends and I like to get together, um, check out new restaurants and uh the new eats in the area.
• 29:14
  SPEAKER_01: Yeah.
• 29:15
  SPEAKER_00: I love it.
• 29:16
  SPEAKER_00: And um people listening are gonna want to get a hold of you.
• 29:22
  SPEAKER_00: Um, I hope you inspire people to to start their investment journey.
• 29:26
  SPEAKER_00: I hope you inspire male, female, um, anyone to say, hey, I heard you on the podcast and I want to do the same thing.
• 29:34
  SPEAKER_00: What what would be the best way for them to get a hold of you?
• 29:37
  SPEAKER_01: Um yes, they could email me at an at sage regroup.com.
• 29:42
  SPEAKER_01: Um, you can call me.
• 29:44
  SPEAKER_01: It's gonna my number my number is 562-294-0784.
• 29:49
  SPEAKER_01: And um, either way, I am here to help and will love to just be part of a journey that um for new investors who are looking for a duplex or a triplex.
• 30:02
  SPEAKER_00: Awesome.
• 30:03
  SPEAKER_00: And I'm gonna give you the final word, any any last thing that you want to let our listeners know.
• 30:09
  SPEAKER_01: If you can afford a single family home today, you can afford a duplex.
• 30:16
  SPEAKER_01: And it is not um the difference is not as best as you would imagine, because the average price for a duplex, triplex, and single family home is a million dollars in Long Beach.
• 30:32
  SPEAKER_01: And so if you're looking to have a new home, I would consider duplex and triplex as you have a bigger return.
• 30:41
  SPEAKER_00: And you're doing that now.
• 30:42
  SPEAKER_00: So I mean you're you're someone who believes in that.
• 30:45
  SPEAKER_00: So so there you have it, folks.
• 30:47
  SPEAKER_00: Ante, make sure you follow her, give her a call, send her an email, and um send in your messages or uh your comments and questions below.
• 30:57
  SPEAKER_00: Thank you.