Ok guys so as I prepare to purchase my 1st owner occupied multiplex unit and read more and more about the 2%, 50% etc. rule, I notice that my numbers aren't looking like everyone says it should because of how expensive the real estate market is down here in sunny south Florida. I've read that even if it isn't a (+cash flow) deal its still a good investment, but others have said they wouldn't do it so I'm between going for it or just buying a single family for myself then invest in multis elsewhere. Your advice would be appreciated! Thanks again ladies and gents!
I'm a local realtor and investor so I'm familiar with the market and in some places, the cash flow is great while others are not the case.. What cities or parts of the cities are you seeking at the properties.. Anything near the coast or East of US 1, you can forget about the 2% rule... You will be lucky with 1%... Also, multi-family properties down here are Overpriced right now!!
I bought a property last year (planning to live in it for a while and then rent it out) and I was hoping to find a duplex at the time. Just like you, I wasn't able to -- there were a few in the really low-income areas (which I don't want to invest in or live in) and a few that were way out of my price range, but the multifamily market just doesn't seem to be there in my area.
I ended up getting a SFH, but another option might be to start looking outside of your immediate area if you really want to find a multifamily. I'm not sure what your area is like, but if you look outside of the cities and in the smaller towns nearby, you might be able to find what you're looking for.
Hey @Mitchell L.,
As I look through the MLS I noticed that everything is eastside so it looks like I will be in that area, AND yes ALL are OVERPRICED doc! $200k for a duplex??? C'MON man! Lol
Yes, 200K for a duplex may be OK if it is (2) 3/2s in a good area where you can rent it for $1250 or more but not now.. These type are going for 300K... Good Luck!
Thanks @Anthony McDougle . That's exactly what I'm doing but down here I've noticed that most if not all are in a concentrated area. I'll bite the bullet and sleep with my 9mm if I have to (lol) but the prices are just ridiculous when compared to the numbers I think I should be seeing based on the rules of the game.
I feel your pain. Even the REOs here are way overpriced. There are definitely deals out there, but as a new investor it's tough to know how to recognize that diamond in the rough.
Thanks doc, I'm not giving up. Something must stick!
Thanks @Mitchell L.
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