I have $30K to start down this road of R/E investing. I was looking at sub $30K market in PA (Wilkes Barre/Scranton/East Stroudsburg areas). Should I:
a) Buy a single family for let's say $10K, fix up for $20K and sell it for around $60K or
b) Buy a 3 family house for as much as $60K. Put down $30K and have seller hold a 2nd to be paid off in 3 yrs. Rents probably $650/month X 3 or $1950/month. Property Taxes: $1,650/yr, Ins: $1200/yr, PM: 10% or $195/month, Vac: 11% or $214.50/month
hi Michael, it may be more a question of your skills and goals...if you are ready to be a landlord, the buy and hold may work (and why not get a 30 year loan, 20 percent down, to make it cash flow and hold long term ) and put down less..or if you are construction whiz or have a good relationship with contractors the flip may be your thing...
More about your situation may help you decide, too, like do,you need a place to live (check owner occupied rates for financing on the triplex)... In general, I have seen more average homeowners become lanldords than flippers (which can depend as much on your construction knowledge and project management in my view)...Also, side note, I like that part of the country and spent 3 summers there outside east stroudsburg as camp counselor....tannersville was closest town I recall to camp...best of luck!