Hey guys, Im new to investing and Im playing on moving to the Fort Lauderdale area next summer. Im debating on getting into STR like airbnb or go for long term small multi family, whatever's going to give me a better CoCROI. I plan on moving down there with about 30k. Just looking for some insight, Thank you!!
I don't have any experience with airbnb, but regarding long term small multi family, just make sure the will generate positive cash flow. See the 50% Rule. Looking at the average home price and rental price in Fort Lauderdale, it might not be easy to find properties with positive cash flow right now with buy and hold multifamily. However, you are in the right place to find answers. Good Luck!
@Joel Hutchinson Hi Joel, thank you for responding! When do you think will be a good time for small multifamily here? Will there be a crash? Thanks!
In my opinion, while the market is cyclical, nobody can repeatedly and reliably time the market.
However, I also agree with Gary Keller statement in The Millionaire Real Estate Investor (at least I think this is where the quote came from) that said something like: Anytime an opportunity meets your strict criteria and you act, you have successfully timed the market.
So market timing, is more about having strict criteria for buying properties at the right price (a great deal) than trying to predict one's place in the market cycle.
@Daniel Cabrera If I were you I would consider buying a duplex or larger multi family so you can live for free (or close to it - and maybe even make $ as well). Then save up for what ever else you want to invest in. You'll get the benefit of writing off just about everything on your taxes AND living for free. Just a thought.
As far as AirBnb, I would hold off on that until this pandemic is under control or a vaccine has been distributed, etc. Airbnb is definitely not at capacity write now due to this. I Airbnb out a bedroom in my house and I'm half booked compared to last year. You may want to check out the competition in whatever area you are considering by looking at properties on Airbnb and seeing what others are charging so you can get an idea of what your income may look like for a similar property in the same area. Hope this helps!
@Daniel Cabrera I would recommend looking for a small multi-family (triplex or quadplex) in Fort Lauderdale if possible. With $30k and using an FHA loan, you can buy a decent multi-family property to house hack in Fort Lauderdale or the surrounding areas and likely live for free. Depending on what you are comfortable with, you may even be able to cash flow a little as well. Good luck!
@Bradley Sriro thank you for the advice!
@Deb S. Thank you for your insight!
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