SMALL MULTIFAMILY OR SINGLE FAMILY?

Question

Hello everyone!!

I’m in need of some advice from experienced multi family investors. I’m selling my personal residence and should be keeping about $90,000 after paying off my mortgage. I’m looking to invest this money the soonest possible, and I have about another 90,000 in savings. I have only bought SF in the past. I’m looking to get into multi family investing. What do you guys recommend, should I look for a two unit? Four unit the needs work? The market I’m looking to invest is Detroit. Thanks in advance.

Account Closed · Answer

Why is that Frank?

Frank Wong · Answer

Different strokes for different folks.  Each one offers something different.  I own both and I prefer SFRs and that's all I buy now.

Khalid Bryan · Answer

@Maria Luna small multi family all day. You want to build your portfolio with doors/units. Not individual structures. The expenses may be a bit less in the long run this way.

Bala A. · Answer

Hi @Maria Luna

May I kindly suggest that you may wish to consider sticking with Single-family Investing rather than Multi family (especially in Detroit).

On paper Yields would be high on MFRs - agreed.

But one bad tenant (say a dealer) will get all the units empty in a short while. Tenants will drop off quickly.

Secondly, your exit criteria will always be harder.

You can only sell to another investor. And investors seek Yields. Meaning Lowest Sale price to you.

Unlike SFRs you can sell to a Home Buyer and there is an Emotional value attached.

I convert all my Duplex to Single Family homes.

My most recent project was this two family Flat (Two 4 bed 1 bath Units).

Which I have converted to a 9 Bed 2 bath (converted the upstairs kitchen to another Bedroom).

We are running this as a Department of corrections Boarding Home.

William Harmon · Answer

no, im down in TX.

Maria Luna · Answer

@William Harmon

Nice, Are you located in Detroit? I’m moving there in September.

William Harmon · Answer

great. Im looking at detroit to get my start

Maria Luna · Answer

@William Harmon

Yes, if the numbers makes sense I totally would.

William Harmon · Answer

Would you consider possibly doing a partnership?

Maria Luna · Answer

@Abel Curiel

I’m actually moving to Detroit in two months, and i do want to manage my properties. My goal is volume for cash flow, so I feel like I can accomplish this faster with multi family. I appreciate the advice.