Advice

[David Ronquille]

Looking for advice, I'm a average handyman at best. I'm from New Orleans, Louisiana area. I have about 70k to start with. Should I buy a flip, or a rental? A single home or a multi family home? I'm more comfortable with the single home, (seems to be less for a risk for me) but the numbers look a lot better on the multi family home. Any advice would be great.

[Mike Wood]

@David Ronquille I am not a flipper, so my experience and suggestion would be buy and hold rentals.

I am a big fan of duplexes in New Orleans. They are cheaper per sq ft than SFR, easy to buy and sell, and generally very desirable from a renters perspective. In greater NOLA, I think you will find it tough to get a SFR that will cash flow very well.

Assuming that you have $70k in cash to invest, you would be able to buy what you want, financing 75% LTV (that would put a max purchase price at $280k). Depending on where you look, you can find good duplexes in good rental neighborhoods for $90-$100/ft2. With your cash you could likely find a couple of turn key duplexes to purchase. SFH are selling for at least $100/ft2, and typically more.

For example, in Gentilly, a turn key 2/1, 1600ft2 duplex could be purchased for $150k, and should rent for $1700, maybe more (I have a 2/1 duplex in Gentilly that rents for $1800-1900/month). A SFH in the same area would typically be a 3/2, 1400ft2 and sell for $168k, and should rent or around $1300.

While two units is a bit more work than a single, its not likely double the work.  Sure there are two kitchens, two AC units, but somethings are the same work (like yard care, bills, roofing, etc).

In NOLA, I am not a huge fan of 4 plexes, as most of them are in not so great areas of town, and attract not so great tenants.

If your looking outside of NOLA, things could be different. I see alot of people with SFR here on Bigger Pockets from other areas of the county.