New to Real Estate · Peachtree City, GA · Member since 2022 · 1 post · 0 votes
What’s everyone’s opinion on buying more single family rentals, or one multi family rental? Say you have 100k to put down, use that amongst multiple properties or one bigger property?
I have some dulexes and a 12 unit-single building-. The 12 unit is so much more cost effective to maintain. Cash flow and profit per dollar invested is quite a bit better. Hard to beat having all your tenants under one roof.
If I could find another 12 unit within an hour of my home I'd buy it and sell the duplexes. Unfortunately today everything in my market (most markets) is priced too high to make a decent return.
It all depends on your goals. Multi-family (depending on the type of property you can buy in your area with $100,000 down,) may get you a Class C property. That will come with it's own challenges- usually more maintenance, more tenant issues, etc. The plus side is- multi unit revenue with big expenses like roofing etc all in one location. Everything is confined to one building as opposed to managing several homes in several locations.
I have some dulexes and a 12 unit-single building-. The 12 unit is so much more cost effective to maintain. Cash flow and profit per dollar invested is quite a bit better. Hard to beat having all your tenants under one roof.
If I could find another 12 unit within an hour of my home I'd buy it and sell the duplexes. Unfortunately today everything in my market (most markets) is priced too high to make a decent return.
Depends on how much time you have available. Single family will drain you, MF is a lot simpler to manage and operate. This is a equity vs cash flow debate.
@Jonah French it depends on the numbers and the return you get from one bs many. I like the many approach because if one is vacant you have income coming in from others. If you only have one and it is vacant, your income is zero until you get it rented again.
Even if you had more to put down, there simply are not many/any multi-family properties for sale. If you find them, they are over priced. Single family however are everywhere and tenants stay longer in a house than they do in apartments.