Multi Family VS Single Family brrrr
Hi all,
After reading David Greene's book, I've started looking at long distance rentals. I got preapproved and found an agent. The agent suggested multi unit properties.
It seems to me that in David's book and in Brandon's webinars, they are talking about single families when looking to BRRRR. I did a forum search and found some good info but mostly found the noncommittal answer of "it depends on what you are doing" and sure in a way it does but, I'm wonder why they and other investors would choose a single family over a multi for BRRRR.
Thanks
Andy
Howdy @Andy Giles
It depends on your market. What type of properties are available. What meets your investing criteria. What is your price range.
@Andy Giles, the SFR suggestion by Brandon et al is often given when addressing absolute beginners, and/or those who cannot afford multis straight away. Also, the competition to buy multis is often/usually much greater (because, multis are the way to go for a larger cash-on-cash return), so again, newbies and paupers (usually) need not apply.
Also of course, "it does depend" (on your goals and many other factors). Welcome to BP...
I can see how it can depend on what you are doing but, what I am asking is why David Greene for example in his book talks about looking for 3 BR 2 BR single family homes. Also, why Brandon Turner seems to only analyze single families in his webinars.
It seemed as if there may be something obvious I was missing but maybe it is just cost and competition. I was thinking there may be something different about how they can be financed.
If multi families were available in the market that I was looking at within my price range, I can't see any reason not to go with a multi unit property.
@Andy Giles, my guess is: it's the k.i.s*.s. principle. Most everyone prefers to live in an SFR, so why wouldn't they buy-to-rent the same type as soon as they can afford to invest?
Every buying/investing principle can be most *simply explained by using the SFR example.
You wrote: "If multi families were available in the market that I was looking at within my price range, I can't see any reason not to go with a multi unit property". Neither can I! Go forth...
Cool thanks for the input.
Most of a reno is in the kitchen and bathrooms so a multi will cost a lot more to rehab. There are also not as many comps for nice multi rehabs as single family sales as investors hold on to them. I'm currently running the numbers trying to decide which direction to go myself.
Also depending the eviction laws it might be harder to get to do Renos and refinance quickly.