So a little background. I have always been fascinated with real estate. I had never thought it was something I could do. However after a few years of the wife and I working we have built up a nice nest egg. We have little debt, perfect credit, and make over 100k per year and that number is growing. Through sheer determination and will power we have both been successful. So after setting aside a chunk for a trip overseas we will have around 20k left for a down payment. After spending the last six months or so dedicating my free time to learning and absorbing as much as I can I feel ready to purchase our first rental.
I made one offer on a great duplex with nearly perfect renters. Sadly the seller would not meet in the middle on price so I walked away. I feel that was a blessing, because now I have a place to ask the questions I need answers to. I was wondering if starting out I would be better off with a single family home rather than a fourplex. I would love the extra cashflow but is the learning curve worth it? It may be a matter of opinion but I would love to hear them.
Second question I have is about partners. I have had a couple people I know offer to partner with me on my second purchase. These people are not experienced investors either. The question I have is "am I better off getting to know other local investors in my area for partnership (should I want a partner)?" We are in a position to put a down payment on one new 90-140k property per year in our current situation. Is a partnership even worth concidering?
Sorry if I ramble, I am unfamiliar with using forums.
Welcome to the site! No need to apologize. I didn't find your post to consist of any rambling. Good for you on sticking to your numbers on the deal. That's a huge strength to have. As far as partners go obviously you could use the inexperienced partners for passive private money. That can be better than experienced investors who will want a higher return and a larger piece of the pie.
I agree with Ryan D. concerning the partnership. If they have the money, then use it as leverage and you control the terms and the deal.
As far as starting with a single family, or a multi, there are advantages to both. However, just to keep this brief, my first investment was a triplex, and it was 5 hours away. If I could reverse the clock, I may have invested in a single family, because it would have been easier to sell. I ran into issues with the multi, and ended up holding it for 2 years vacant. So, I always tell newbie investors to start with a single family, and learn to manage it properly. Once you've managed a single family, you can just transfer those skills to a multi. Also, if you find that managing the property is not for you, or you get put in a position were you need to sell, it will be easier to sell to a retail buyer as a single family compared to a multi.
Thanks for all the responses! It is absolutly great to be able to have other investors experience to help along this path. Before I found BP, I second guessed every decision after I made it. Hope someday I can pass it forward
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