I would be a first time home buyer when I go to purchase my first investment. I was considering purchasing an owner occupy quadplex if at all possible. I wanted the people's opinion as to whether or not this would be a smart move or not and perhaps a harder move to make then say a duplex or a single fixer upper and flip.
In my opinion buying a duplex+ is always a great decision. The rent from the other units will pay most or all of your mortgage. You'll be living for free or almost free. Can't beat that.
That was my thinking as well but is it right for my first investment? Or would I be better off renting and buying a non-owner occupy duplex or quadplex?
James, since I became addicted to bigger pockets, the exact strategy you describe is one of the more popular of the buy and hold genre I have seen mentioned.... I enjoy my fourplex. One thing to start on would be reading up on landlording, as you will be there, you are in an ideal position to handle it. I have a blog post on the classics of landlord lit, all should be free at the round rock library or for a song at a used bookstore around the area. Also, tons of great forums, blogs and podcasts on bigger pockets...
I think it is a great way to enter into investing. Combined with learning to be a landlord, the other units paying your bills is a plus.
I am hoping to follow the same path. I know of a few duplex's that are selling just under market value in my area. The hard part for me is the price of the unit. What is a strong CAP rate for a duplex? If I include myself as a renter, I would be sitting at about 7 to 8%. I am interested in hearing what rates are out there in other markets.