Investor · Dallas, TX · Member since 2014 · 66 posts · 21 votes
right now I’m doing rentals in a town that’s making good stable cash flow. The town has a lot of potential for further investments in my niche. Unfortunately the town is primarily low income and lacking a loT Of nearby services and labor, for example, I’m having trouble finding a nearby demolition company to demolish a small mfh and qualified labor to complete the fix ups.
Have you been in this conondrum? I think I’m Ready to transition to mfh but don’t want to be stuck With an additional property On the papers.
@Bab Adetiba For your post it sounds like the current property is SFH? I would see if you can wholesale that property and get out as lite as you can. I have not been in this particular situation, but close. When I looked back I learned that I didn't do any due diligence on the area, or surrounding areas or even listen to my gut- I lost $. Your gut will never let you down. The times I didn't listen and due the research first I lost over $150,000. No More. For either SFH or Multi-family I would set a floor on population at like 25,000+ so you don't run into what you did. And never invest in a area where the population is declining. Hope that helps. Good Luck.
I consider many things but never the population trend. Upon research, The town is at about 38,000 population. And the trend has slowed down greatly since the 1990s, to a barely 1 percent yearly increase.
I would not invest in a Multi-family unless you are prepared and capable of doing the renovation and management. You may find good labor, but that can run out quick and leave you in a bind unless you are the back up.