Live in flip or buying a 4 unit apartment ?

1 Reply

Hello all!

I am looking for advice. I am looking to purchase my first home and obviously want to make it some type of investment. I am debating between buying a live-in flip or a 2,3,4 unit apartment complex and living in one of those units. Does anyone have any advice? What to look out for/avoid? I live in suburban Philadelphia. Thank you everyone!!


I personally would choose the multi if I could find one within my price range and a location where I wouldn't mind living for a year or a few years. Here's why: Since you're an owner-occupant, you'll get favorable loan terms. Your tenants in the other 1, 2 or 3 units will probably pay your entire mortgage, or close to it. In the meantime, you can save what you *would*be paying in rent or mortgage and use that towards your next down payment. Then, when you buy your next property (another multi or SFH with another owner-occupant loan), you now get 100% cash-flow from the unit you used to occupy. You can keep it forever, and still enjoy the great loan terms. In a live-in flip, the mortgage comes out of your pocket during the reno. Once you sell, you get the difference from your initial investment, which you can use as down payment for the next property, but no income from the first property after that. So the multi is the clear winner in my book.

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