Better to target a couple of discounted homes for cash, try to utilize downpayment and closing on a few, or use as downpayment for larger apt complex. I know this has been covered a few times- just looking for more of the pros and cons from people that have utilized all 3 options beyond some of the common mentioned for each.
I don't believe right now is a good time for multi units if cash is low , my strategy for the last year was condo units my partner and I picked up37 units with an average sales price of 50k after 35 percent down and a 10 year full amortization they still cash flow 12 to 15 percent stay out of the way of the syndicate buyers, product is getting over valued and I cant believe I just said that
Mike, it sounds like you lean toward the middle strategy, but I have a couple of questions. Why put 35% down? With less funds to work with and higher prices, that doesnt buy much. I see a lot of issues w/ that scenario as well- loans for under 50k I would assume cost more, I dont see 10 yr full amort props that will CF 12-15% (some of that might be due to the 35% down). Also, on the final option, I wasnt discussing syndication- I was suggesting using the money as a downpayment and closing costs for small apt building. The biggest thing I was looking for is the "why" that is your preferred method.
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