Starting Out - Single Family or Multi Family?

Question

I'd like to get some feedback on my approach to the REI game...

Right now I'm looking at getting into a few single family units because of great pricing and later look to sell those (or keep if there's enough cash flow) and get into multi family units...

My reasoning is this... right now I'm seeing homes for extremely low pricing and have yet to find 1 multi family unit that I can get into for the cost of 3 homes and I doubt very seriously that I would ever...

Should I put together a little more investment and wait for the right multi or jump on the singles while I can?

Thanks for the feedback....

Will Barnard · Answer

Rich,

I received updated info and the occupancy is not what they said percentage wise, but the current income looks like it does cover the OE.
I will email you what I have.

Rich Weese · Answer

Hi will,
     I'm working on your units tomorrow. Rich.

Dave Versch · Answer

Several people seem to think that there's a significant difference between a SFH and a duplex.  Aside from 2 tenants to contend with, and assuming all tenants are paying utilities either way, why is it so much better to do a SFH?

Rey Martinez · Answer

Thanks for the suggestions...

I think I'll pick up a single family unit or 2 and see how it goes...

Lots of good deals around.

Any opinions towards newer or older builds?

Will Barnard · Answer

I have found that the numbers can be better with multi's (duplex and quadplex units), but it ALL depends on what market you are investing in.
AZ SFR's are great deals right now and buyers are coming to the table due to the affordable housing again. Makes for a good flip market.

I also agree with MikeOH that you should start small and get your feet wet first.

No Name · Answer

The key is to have the numbers work.  If you are just starting I also would recommend a SFH.  There is no reason to jump the gun and if you dont like it or dont want it, it's exit strategy is easier than a multi family.  Work your way into it.  Just make sure your cost per unit works with your rental income.  You can make a lot of mistakes and still get out if you buy low enough.

Travis Soileau · Answer

My first property was a multi unit property. I found a guy looking to get out of the rental business and bought a distressed property and fixed it up. Now it brings a 1000 a month for me.

Jeffrey K. · Answer

Buy where the numbers work and you feel comfortable.

Mark N.A · Answer

SFHs have more exit strategies, but keep in mind we are not in a seller's market.  Don't buy into something without enough cash flow for you to keep long-term.