So I am in the pursuit of a live in 4 plex but I have a family including a new daughter and I am concerned about buying a multi in not such a nice area for them. I am finding many deals where cashflow is doing $200/ door. The issues however I keep running into Is buying same size quads for 100k more to be in a better area vs buying lower end quads for a smaller price. Since I plan on living in 1 unit for at least a year I figured I would spend more $$ for a better quad. After the year is over I plan to buy us a SFR to live in, but I feel a little nervous by buying a lower end property since I will be living in it with my girls. Prices for nice quads are in the mid 200s vs low end quads of mid to low 100s. Anyone's input or experience I would appreciate thank you!
IMHO this is the biggest flaw with the owner occupied multi approach. You often have to compromise between your requirements for an investment and for a place to live. And, because you want this as a long term investment, its the "place to live" requirements that have to be lower priority. I don't have any good answer other than I just think this strategy is not always the best. Your situation is one where you might want to come up with a plan B. Such as, buy a good investment and rent something for yourselves.
Jon Holdman, Flying Phoenix LLC
@Jon Holdman thank you for your response I have been thinking the exact same for a while. I wanted to live there but now seeing my daughter and seeing the properties Its a hard choice to make sacrifice for a year and just suck it or up or get my family into a rental give myself a year or two to buy and then get a house after the initial investment
@Phillip Gonzales , I was in the same boat. I currently rent and just bought a multifamily investment property. Was looking for an additional multifamily to move into, but couldn't find anything where the numbers would work out and family would be happy in. Will save up some money and look at purchasing another home to rent out in a few months. Good luck on your decision and look forward to hearing what you decide.
This is a difficult decision. The lines between business and family blur. The hard part is determining what sacrifices you will ask your family to make so that you can build wealth for them. Personally I have decided that I will spend the extra money (3.5% down for an OOC) and buy in a great neighborhood. I have already asked my family to make sacrifices in the budget arena, which is healthy, but I will never put my family into a positin where they may be in danger, regardless of the money to be made. This really should come down to a wisdom not a #'s decision.
I know I go back and forth with this one. I want to live in a SFR but understand this is a very great opportunity to get a multi and if I can get a 4 plex even better!
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