Buying small SFH vs leverage to Small MFH

[Taylor Holden]

Hey Guys,

I’m still after my first real deal as I’ve been house hacking my personal home for 3 years now.

I had a deal almost to contract with a 4 plex that I negotiated a great deal with but mere hours before signing contracts he took a higher offer when it was off market.

So now I’m stuck with this.

I have 31,500$ saved. I have thought about turnkey (as I travel 300 days or so out of the year for work.). However I don’t like most of the contracts and terms.

I have a mentor who is offering me a small rehabbed SFH 2 bed 1 bath. In a flood zone that he owns. Landscape needs help and next door has a vacant house (needs to be demolished).

He’s offering this for 27,000$. This could rent for 540$ a month with a bit of clean up on the outside. It’s in a downtown location but off a wooded road by itself. Location is maybe C class down the road.

I’m having a really hard time finding anymore worthy small multi family deals in the area. There aren’t any good ones in the area that cash flow.

So my issue is do I use almost all my savings and get into this small rent house, or do I wait and leverage this money when the small multi family’s start showing up again.

I’m really stuck as I want my first deal to happen but I’m not wanting to let go of all my capital to just get one place.

He won’t seller finance this either.

I have also thought of doing rent to own on the SFH to try and get a higher monthly out of it as I wouldn't want to keep it forever anyways. (Any insight on that would be cool.)

Thanks in advance.