I have been saving and looking for deals now for almost 2 years.
Currently I am in contact with a friend who is retiring and unloading his investment properties. Looking for a private sale.
I have an option to buy a 3br/1bath with a 1br/1bath multi. There is also a large detached garage I could rent out.
3br = 1350
1br = 700
Expenses are about $1850 so I have a positive cash flow. This house is newly renovated ready to move in.I would use a FHA and live in for a year and then move out and hold.
The concern is the asking price of 245k which is maxed out in the current market. He said if private sale then that would save him 13k from posting on MLS (he is a realtor also), so now that brings his value down to 232k.
And then there is a short sale that is a SFH 4br/1bath that I put an offer in yesterday of 133k. ARV is at about 200k and I figured 30k rehab with out having any other info since no inspection was complete. I would use a USDA loan in this one live in and then look to Refinance.
If you could only do 1 or the other which would be better for long term?
I am thinking the multi since it comes with two doors ready to go (turnkey - 1br occupied) verse the SFH which if the market shifts will lose value and I will have less chance of a refinance. The multi will be a more of a hedged deal since I'm market shift rental properties will hold their ground.
Thoughts ? On a DISC personally scale I am a high SC so I like to talk things through, so thanks for feedback!