Real Estate/Property Management · Philadelphia, PA · Member since 2014 · 9 posts · 3 votes
I bought my first house last year and we just finished renovations in it. We are also living in the house and doing most of the work ourselves.
My boyfriend is looking for another investment and originally he thought that multifamily property would be a great start. But last week we saw new listing for a single family two doors down from our house and now he is thinking to get that house instead and flip it.
Should we stick to the plan and look for multifamily property, or go ahead and purchase the single family one.
It sounds like you and your boyfriend have a good strategy in place to help build your portfolio which will ultimately give you long term financial stability. There are a few things that you would need to consider when using FHA financing which can be a deciding factor as to the direction you decide to go. The most important question is your boyfriend currently on the mortgage and/or deed with your home? If so that would create some obstacles and if not using the 203K would be an ideal fit. Whether to buy a single family or a multi-family that is great question and would really depend on your long term and short term goals. In my personal opinion a multi-family home is usually going to give a greater return for there the monthly cash flow to consider and if I was a new investor starting out I would opt to look for a multi-family. That being said it is about the opportunity and if it is the right one its always worth considering. We can certainly help to give you some guidance here if you need it.
If you should have any questions please feel free to give me a call.
Thank you for your post. My boyfriend is not on the mortgage or deed with me. That is why he would like to use FHA 203K as a first time home buyer. He will move in there when renovation will be complete.
I agree with you, that multifamily property will give us a greater return and he will be living pretty much for free. Although, we found out that it is almost impossible to find a multifamily property that makes sense financially. It is kind of frustrating actually, but we are not giving up.
Thanks again for your reply. I will keep you posted.
I also think that multifamilies are generally the better investment type. However, it's always dependent on your market. If the numbers don't work for multi's in your area, than you should adjust your strategy/criteria accordingly to meet your goals. Multi-familes are amazing in St. Louis were I currently live, but they are terrible in CA where I came from. Just my $0.2.