What is the best kind or type of buy and hold properties for an RE investor? Duplex triplex, fourplex, or individual properties? Also, what is the best way to acquire these types of properties with a loan? What is ideal to put down? 10-20%?
4plex would be the best way to start if you can afford it. Just think, one roof, one appraisal, one inspection, etc. If you are going to live in one of the units, you can purchase it using an FHA loan for 3.5% down. You have to live at the residence for atleast a year, and you cannot have more than one FHA loan at a time. You would need to refinance out of the FHA to get the PMI to come off of the loan as well. If you are going to buy it as an investment you will have to do 20-25% down payment.
Hi Daniele and welcome to the forums. This is really a trick question - the best type of property to invest in varies greatly with your situation, financial status and the area you live in. With that said, the common denominator is return on investment.
If you're just starting out and have very little cash, buying a fourplex with FHA and living in one of the units is a great way to get started. If you have capital, the type of property you're looking at shouldn't be nearly as important as the ROI. I would try to put as little money down as possible, unless you're cash rich and risk averse.
What if I buy FHA/3.5% down, live in one of the units, and then buy it later from myself as an entity to protect my asset? Is this wise?
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