South Jersey · Member since 2019 · 40 posts · 13 votes
Hello inventors , my name is Baahir. I am new to the world of real -state . Im am 27 with no kids and looking to invest and create cash flow . I’ve have around 25-30k in money to start ? What do you guys think is the best option to go towards investing ? A Duplex or a single family ? I live alone in apartment right now by myself. Just trying to see what would be the best option ?
Oregon City, OR · Member since 2017 · 10 posts · 7 votes
7y
You may also want to consider the lifestyle impacts of single family vs. a duplex. With $30k as a down payment, where would you be purchasing a duplex? Far from work, and friends, potentially a worse commute? Does the thought of being a landlord in the same building as a tenant sound like something you want to deal with on a day to day basis?
Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
7y
I'd buy a duplex. My reasons for doing that are included with a lot of good information on how to start toward financial freedom at a young age in a book called Set for Life, by @Scott Trench. Not coincidentally, it is available for purchase on this website.
Rental Property Investor · Kenosha, WI · Member since 2017 · 47 posts · 27 votes
7y
@Account Closed
I recommend taking that capital and putting it towards a duplex, triplex, or 4 unit. You can house hack, by living in one of the units and renting out the other. This not only allows you to live for free or close to nothing but you will gain experience in being a landlord, you'll build equity from your tenants paying off your mortgage, and great tax write-off.
In your case, you can be flexible. Take advantage while you can because once you have a family your living choice will be limited and it will be hard to "house hack".
Oregon City, OR · Member since 2017 · 10 posts · 7 votes
7y
You may also want to consider the lifestyle impacts of single family vs. a duplex. With $30k as a down payment, where would you be purchasing a duplex? Far from work, and friends, potentially a worse commute? Does the thought of being a landlord in the same building as a tenant sound like something you want to deal with on a day to day basis?
Real Estate Agent · Oklahoma City, OK · Member since 2019 · 956 posts · 600 votes
7y
@Account Closed house hacking is a great option and you can do it for 5% down. Then you'll be covering part of your mortgage by your rent and reducing your living expenses.
If moving isn't an option I'd look into a safe market where you'll make great cash flow. I like the safety of a cash flow strategy over an appreciation strategy. If you invest in a market to appreciate right now there's some risk because we're due for a downturn. Typically a rapidly appreciating market will also have a big dip in a downturn.
In OKC you can purchase a C class rental for 70k. After all debt service and operating expenses, you'll likely make around $150/month. This market doesn't have the big dips, so even in a recession not only is your value protected, but your rent rates are as well!
Rental Property Investor · CA · Member since 2019 · 47 posts · 23 votes
7y
I agree with @Cal Rohrman. If you buy a duplex, you can live in one, and rent another one. This will not cost you much, and you can gain experience of how to be a landlord, which can help you in the future property investment.