need advise on which method is best to start
hello,
i have a total of 65k cash and looking to invest in a 2 to 3 unit property in philly area. I am from North Jersey and looking for what strategy is best to invest. is it best to house hack a 3 unit in a D-C class area? buy a fixer-upper duplex BRRR ? or buy a Single-family house and Airbnb it? i feel overwhelmed with the possibilities because i have been looking but have not found any cash flowing 3 unit in philly so im thinking is it the market or is it me? I read many real estate books and blogs. I could use some advice on the topic.
Most Popular Reply
@Mario Gonzalez imo house hacking would be the best way to begin. It's much easier and it's a great first step. My advice would be to buy in a great location (perhaps a property that needs a little work in a great area). You can owner occupy one unit and collect rent on the others, thus covering most/all of the expenses for the property and possibly living for free or at a reduced cost. I don't know the market there so talk to several PM companies, tell them what you are looking to do and ask them about desirability on duplexes, triplexes and quads (ie are they easy or hard to rent, manage, etc.). You can buy for as little as 5% down if you occupy a unit with a conventional loan. Some call this investing with training wheels. Nothing wrong with a safe first step! Remember, turn over costs is the cash-flow killer so you want to purchase something that will be easy to rent and nice enough that people will want to stay.