Sell my single family to purchase a multifamily

Sell my single family to purchase a multifamily

Riverside, CA · Member since 2016 · 37 posts · 19 votes

Hi, 

I am new to Biggerpockets and Real Estate investing. I'm learning as much as I can right now on this site and reading books. I currently own a single family home that I bought in 2010. My Tenants pay $1500 and my mortgage is $1000. I want to starting investing in multifamily properties (I own one duplex that I live in and rent the other), so I am thinking of selling this home that I own $160,000. An identical home sold in the last 3 months in the area for $244,000. I would use this profit to purchase a multifamily property, that is a good deal of course. Any advice? is this a good move? 

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  • Consultant · Providence, RI · Member since 2015 · 117 posts · 37 votes
    8y

    @Nicole Collins just keep this mind as you search for your Multi-Unit / MF property . . . the  total gross rental income divided by the number of tenants / units = gross rental income per unit.  

    The LESS UNITS you own, the less gross income you will also have if you lose a tenant, for whatever reasons.  

    The MORE UNITS you own, the less losing a tenant will IMPACT your monthly gross income = BOTTOM LINE.

  • Riverside, CA · Member since 2016 · 37 posts · 19 votes
    8y

    Thanks @Monique Rene Coates, that totally makes sense! 

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