ONE NEWER NICER MULTIFAMILY OR 3 older cheaper ones?

ONE NEWER NICER MULTIFAMILY OR 3 older cheaper ones?

IN · Member since 2018 · 23 posts · 0 votes
I am brand new in this game. A little advice appreciated. I have about $30,000 equity in my home that I will use toward down payments on multi family units. Would it be better to buy one newer, nicer maybe even bigger multi family unit or several cheaper, older apartment buildings?
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  • Investor · Austin, TX · Member since 2015 · 263 posts · 186 votes
    8y

    @Chuck Rhodus  Starting out, I would opt for the newer construction.  

    Generally - Fewer capital expenditures, reduced operational costs and a better qualified tenant pool.

  • Investor · Taylor Mill, KY · Member since 2016 · 2k+ posts · 964 votes
    8y

    @Chuck Rhodus How hands on do you want to be? Like @Ryan Cox said, the older ones will have more issues to deal with. 

    On the flip side, with older buildings that have room for improvement the capability is there to force appreciation and refinance or sell to get your equity out and buy another building.

    All depends on your goals with the property(ies).

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