6 condo package vs. small multi-family
Although I'm leaning towards a more passive investment in a 1031 exchange, I did start to explore some property options in my local market. No interest in self-managing and would be a new active multi-family investor if I do something. Looking at a slightly under valued package of 6 condos (townhome style) in the same community in an A rated location vs. a few different small multi-family properties in more B to B- or C+ locations. The cost of the condo package vs. the lowest price MF in a B+ location is nominal. The other MF are as much as 80% more but do offer more units/revenue, etc. Condos are newer in a suburban area, while the MF's are mostly urban or lower end suburban. In general, what would be tougher to finance/refinance, manage, maintain and re-sell?
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@Diane Forgy I know we have spoken in the past but condos in the KC market are rarely a great investment for a more passive style investor. Managing an HOA, the manager, and living with decisions that the HOA makes can make your property worth less. Multifamily class A or B is more predictable, especially those with garages and exterior entrances as they feel more like a home and you have lower tenant turnover. Hope that helps as you continue your journey.