How do you figure out which type of investments to focus on? Single family, multi family or commercial. I have enough money for any but very little experience.
What are you looking to do long term in Real Estate?
If you wast passive income Multis are great and if you want to raise capital quick fix and flip is the way to go!
nick, thanks for your response. I want to buy and hold for long term passive income. I do think multis are the best match. Do you typically follow the 2% rule. I finding it difficult to find a property in Atlanta that fits this criteria. are there other ways to measure a good deal or good value?
Be careful. Available money and limited experience can be a dangerous combo.
At this point you may not even know what questions to ask. Continue to read as much as you can on the forums and listen to the podcasts.
You may want to partner with someone that has experience on your first venture.
Interesting. Wife & I went from a SFR via 1031 directly to a MFU 6-unit.
If you've see my comments on BP/seen my profile, you know I much prefer the MFU.
It has seen us thru two RE down turns and event nasty fire and eviction costs, which a SFR would not do without major reserves. The MFU has been operated cash-n-carry for 18yrs now. It has also grown in value 2x using the Economic Appraisal method, while SFR only grow using comps.
The DOING of rental management is the same - - the startup is the major difference, aka commercial vs conventional loans.
I agree with NA Beard
Commercial financing is tougher and typically has an ARM, and requires more experience to manage. MFR are smaller (1-4 units) easier to manage, and you can qualify for conventional so financing for the first 10 mortgaged properties, could be a fixed 30 year term. After that you could go commercial. Just my opinion though. If you have the money, go with class "A" property, that is going to appreciate in value and give you higher quality tenants, in a high demand area.
Thanks to everyone for all your advice.