Single family homes vs multi family buildings?

Question

Hello, I'm new at this blogging stuff, would like to hear your comments about multi family buildings vs single family homes for investment, in the past few years I was able to pay off 3 rental properties that now I own free and clear, Im interested in getting into multi family buildings, was it a mistake to pay off mortgages? what are your thoughts about selling out and purchasing a multi family building? I have no cash but the equity in this properties...., I was kind of sceptical in asking this kind of questions, but I found some interesting blogs of questions and answers, it seems to me that everyone is very helpfull, will appreciate your comments.

Joel Owens · Answer

Hi Mario,

There are many of my newer clients moving from SFR to Multifamily.They have done SFR for years and years and want to move more to the commercial side.

Multifamily you will find is different in finance structure,analysis, and due diligence versus a sfr home.

If you have your properties paid off you have "trapped equity" with your cash not performing and losing value every year with inflation.

Especially in this low interest environment and the deals that are going on you almost have free money to borrow and leverage.So to me to leave all that money sitting there doing nothing is not taking advantage of this opportunistic cycle occurring in most parts of the country.

You would sell your 3 houses and 1031 into a multifamily property or properties of your choice.

If you like feel free to contact me.I always love discussing investing in multifamily and also triple net properties.It's what I specialize in. You can colleague request me and my other e-mail and phone is below.

Single family homes vs multi family buildings?

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