First time home buyer, multiplex or not?

5 Replies

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.

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 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.