Multi family now or later??

Question

I'm a first time investor, and have been researching and learning about REI, and I thought I had formulated a plan, where I would buy a multi family(ideally a fourplex) live in one and then rent out the other units. But I still wanted to figure out what i wouid do about financing,(I was leaning towards and fha as that only requires a low down payment and wouid leave me money for repairs, and possibly another investment property) and also how to find the deal, as Id like to buy an REO multifamily.(I wanted to find a real estate agent that specialized in working with investors on multi family bank owned properties) But then I realized that i 6 months left on my lease of my appartment. Therefore now I'm thinking I should buy a single family, either at auction or find an REO. rent that out, then in 6 months find a fourplex and move into that and rent that out.

I was hoping some of the very knowledgable and intelligent people on here could help?

Thank you for your time reading this post!

Barri

I was hoping some of the very knowledgable and intelligent people on here could help?

Thank you for your time reading this post!

Barri

Barri Griffiths · Answer

thank you mike!

Mike Hanneman · Answer

I would just worry about finding your multifamily unit and then go from there. It can take some time to find one that is "actually" cash flowing, trying to find one that is REO may be even more difficult.

Barri Griffiths · Answer

great advice thank you!

Do you have any suggestions on how to get another tennant in? Other than word of mouth?

Thanks

Duke Marquiss · Answer

I would look more at the 4-plex.  It will take a little time to find one and 45-60 days to get your financing. Your landlord may let you out of your lease especially if you find a replacement tenant.  The 4-plex will increase quicker than a SFR and your ROI will be greater and quicker.

Good luck