Is this good to START with 6 apts rental multi-family investment?

1 Reply

Hello,

I am still considering to buy my first investment property. It seems multi-family building is better because:

1) It is cheaper to buy the 6 apts single building than 6 individual condos

2) I don't need to follow 6 board actions. I just manage the building myself

3) If some apartments are vacant...it is not a matter of 100% vacancy and hurry to find new tenant

But it seems too risky to start "new full-time like" responsibility without "first experience with smaller scale".

What do you think?

Another question is about getting a real estate licence to buy just one property in Illinois. If property is 750k...3% buyer agent fee is over 22k! Can I save it? I can get a license for about 1,000-1,500 by spending some time and saving what.. 20k? Does it make sense to get the license for such purchase?

Thank you for sharing your thoughts,

Alex

Originally posted by @Alex Malko :

Hello,

I am still considering to buy my first investment property. It seems multi-family building is better because:

Statement 1:  1) It is cheaper to buy the 6 apts single building than 6 individual condos

Statement 2:  2) I don't need to follow 6 board actions. I just manage the building myself

Statement 3:  3) If some apartments are vacant...it is not a matter of 100% vacancy and hurry to find new tenant

Statement 4:  But it seems too risky to start "new full-time like" responsibility without "first experience with smaller scale".

What do you think?

Another question is about getting a real estate licence to buy just one property in Illinois. If property is 750k...3% buyer agent fee is over 22k! Can I save it? I can get a license for about 1,000-1,500 by spending some time and saving what.. 20k? Does it make sense to get the license for such purchase?

Thank you for sharing your thoughts,

Alex

 Comment 1: It's not the cost, it's the net cash flow that counts

Comment 2:  Have fun

Comment 3:  No, you have 100% vacancy in that unit.  6 Units with 1 vacancy is the same thing as 6 properties with 1 vacancy.  The apartment unit isn't any less vacant.

Comment 4:  ...then learn about risk controls, and put them in place.


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