Newbie Question #1: Choosing first investment

Newbie Question #1: Choosing first investment

Upper Darby, PA · Member since 2013 · 146 posts · 7 votes

As a new member who has a ton of questions, I want to ask a new question everyday to get some feedback from real folks. I'm reading a ton of material but I feel like the BP community could offer significant insight to some of what I'm reading. So here's my first question:

If you had to start over again and choose your first investment property would it be a single family home or multifamily home and why?

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Santa Monica, CA · Member since 2013 · 34 posts · 23 votes
12y

I agree with @Brandon Turner first statement tho be careful living on the same property as your tenants. Often times it is good to have some sort of separation between you and them. Living on the same property as them alllows them show up on your doorstep anytime they want. You could always hire property management and the tenants will never even know you own the property.

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  • Santa Monica, CA · Member since 2013 · 34 posts · 23 votes
    12y

    @Elisha Keller Yes good question. Even tho RE is a relationship business you have to take care of yourself first. And this means protecting your sanity. @Brandon Turner has good answers.

    Personally I would do whatever it took to protect myself and my business. I am not in business to be loved, I am in business to be successful. Truth

  • Upper Darby, PA · Member since 2013 · 146 posts · 7 votes
    12y

    @Brandon Turner

    I read the article you posted as well as the counterargument you provided within the piece. I understand both points and I think in time I'll be able to truly understand how I feel about the topic. I understand where @Tyler Kimmel is coming from, protecting yourself is very important.

    I can see that using the title "property manager" or buying property under an LLC gives you distance and plausible deniability. I also understand not being in the business to be liked; however, if you have great tenants who one day decide to move out, and they find out you lied to them, that could tarnish your reputation as well as a referral from that tenant. I think, like everything I'm learning about real estate, it's about your goals and personal business model.

    Thanks for the good points to consider. I'm always getting more food for thought here!

  • Santa Monica, CA · Member since 2013 · 34 posts · 23 votes
    12y

    @Elisha Keller Good luck! You will figure out what works best for you. You are going in the right direction. Keep it up.

    Although reputation is important, you will never please everyone. There will always be a good tenants for you.

  • Upper Darby, PA · Member since 2013 · 146 posts · 7 votes
    12y

    @Tyler Kimmel

    Thanks! I truly appreciate your input. Although I'm not sure if I agree, I see the validity in your ideas and will truly consider them within my strategy.

  • Darren SagerPro Member
    Investor · Tampa, FL · Member since 2013 · 2k+ posts · 1k+ votes
    12y

    @Andre Buckner I've been first and foremost an investor well before I was an agent. As for the grind I can't complain because I don't consider what I do work. I'm glad I found something in life that allows me to do what I like and make money at it. My passive income from my real estate investments is the reason why.

  • Philadelphia, PA · Member since 2013 · 21 posts · 1 vote
    12y

    @Darren Sager @Brandon Turner Thanks for the info

  • Investor · New York City, NY · Member since 2013 · 263 posts · 141 votes
    12y

    I currently own a multifamily and would do it again. I live in the same building as my tenants. We have two separate entrances to get to our apartments though. The only thing that I may try different is to rent to special needs tenants like veterans.

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