Short term duplex on lake or multifamily (4+ units)
I currently own one Tri-Plex and am working on obtaining a second property. With the current market I’m trying to decide on the smartest type of investment. Here are my two options. Which would you choose and why?
1). A duplex on a small lake in WI with long term tenants currently in place. Could be used as a Airbnb in the future. The property needs new siding, roof and deck.
2). Multifamily property (4+ units).
Thank you,
Most Popular Reply
This isn't enough to make a decision. Buying an opportunity is always a great win than buying a property type. A lot has to depend on what the market demand is at the time as well as other valuation factors such as price appreciation history, rent over year rent price increase, cost to acquire and hold. In my market, vacation rentals have the greatest return but are more like running a hotel than a rental property business. One bad review can substantially limit income so having everything in place including the cost of fully furnishing it has to be considered as well. I recommend that you take the time to do some market research on rental/pricing demand and actually crunch the numbers. It's all about valuation (buying it right) and ROI (managing it even better). And, congrats on working towards your second investment. It's a big deal...