Right now I'm currently a senior in high school (Naples, Florida). I'm going to college close and plan on buying an investment property to fix up and rent or live in. If I buy a single family property I could rent out rooms to my friends. If I buy a multifamily I could rent out other unit. This is my first property, and I'm still debating whether to choose a multifamily or a single family home. Any advice or tips Id really appreciate. Any questions that would make my decision, feel free to ask.
your going to college. I assume your living close to the campus.
I'd recommend buying the biggest home you can afford. Whether it be single or multi family.
You can rent out every bedroom to another friend or school mate. The more rooms the better.
I agree with @James Wise: Buy the biggest house with the most rooms and rent out each room. You will have more control this way. I had a college friend whose father gave him $100K to go to USC. The first thing he did as a freshman in college was to buy a 5-bedroom house near the campus and rent out the rooms to 8 people (2 people per room). The rent he collected more than covered the PITI associated with the house. Plus he threw parties at the house and charged people (much like a club).
God Bless You!
You could also buy multiple single family homes which is sometimes the less expensive option especially with older homes. I'd buy something bank owned with a lot of potential equity so that you can take out equity loans and buy more like it. I'd also consider whether you want to go to college nearby because property is more costly and difficult to manage from a distance.
I'd be careful who you move in with you because evictions can take months and cost about $100 if you do it yourself and more if you use an attorney.
Make sure it is close to the campus. You need to also understand the demand of the market. Check out sites like HotPads and Craigslist to see what rentals are going for the closer and further you get from campus.
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What no one has mentioned yet is what a GREAT idea it is to start as early as you are. I venture to guess 99.99999% of us on here only WISH we had started this thinking at your age. I kick myself for not having this mindset when I went to college. So congrats on that.
Now to answer your question, I think the answer really depends on the property, the deal you can get, and the rents you can get from such a property. You definitely want something appealing to college students and I think it would be good to find something with multiple bedroom units, as opposed to a duplex that has 2 1/1s. I guess what I am saying is look for a combination of your two options. Can you find a duplex/triplex where you have 2 units of 2/2? Then you could rent one unit out to two individuals, live in one, and rent the other bedroom to a friend.
If you can structure a deal correctly you should be able to clear most if not all of your mortgage a month, so you would be living rent free and other people would be paying down your principal!
I would suggest starting out by searching any properties around the school you will be attending, calculating your mortgage payment, and calculating what you can get in rent. I am a few hours north of you in the TB area but if you need to bounce anything off me, feel free to PM me. I have MLS access so I could help you with some of that information as well.
Best of luck!
@Tony Guarino , congratulations on thinking about your future at such a young age! You are WAY ahead of the power curve and real estate is one of the best way to take control of your life. I would personally recommend buying a multifamily. It generally performs better as an investment property when considering CoCR. However, this is a pretty contentious item on BP so take the recommendation with a grain of salt :)
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