Looking to purchase more rentals

[Luke Benson]

In theory Id you had $500,000 in liquid cash what would you buy? A couple single family or get into multi family? We have 2 single family homes now and are looking to continue to grow.

[Michael Tierney]

I'd vote the multi-family route...

1) Easier to manage as all of your tenants are in one place.
2) You can force appreciation via good management (multi family trade off of a multiple of the NOI). SFH's are worth what the neighborhoods are worth.
3) I find I get a better cash on cash return in multi family because more of the money is in improvements (and less in land).
4) Banks use the earnings of the multi family property when calculating their ratios. Typically they exclude the rental income of the SFH when calculating ratios.