As a first time home buyer, is it smart to build a multi-family? To get the first time home buyer benefits, my wife and I are interested in multi-family but do not have many where we live?
Hey Marvin, Welcome to BP! There are levels too investing, and the knowledge you need. The reason most people start with SFR is it is the easiest to understand, get financing for, and to sell (usually). Then there is condos(you have to know about HOAs, if it is warrantable or not, etc) Then land and developing. Not always in that order but each level get harder and harder. Building a multifamily is probably at the top of the pyramid. You need to know about land and all the rules that go along with it. You need to know about your area and if it can support a multifamily. You need to know builders and budgets and financing. It also takes longer and is more expensive (permits) so you need to know where the market it heading. It would not be fun to be halfway thought a project and see the market turn.
There have been plenty of people who started this way on the podcast and it sprung them into financial freedom so it can obviously be done. Just make sure you do your research or partner with someone that has done it. Good luck and welcome to the party!
Thank you for the response Derek that was really helpful!!