100k to invest. Short or long-term? Single or duplex?

Member since 2022 · 9 posts · 1 vote

Hi everyone,

been listening and reading a lot. This is my first post. I’m trying to figure out the best strategy for investing in my first rental property. I don’t want to get over my head in my first purchase. Should I buy a property to rent long or short term? Should I get a single or duplex? houses here are running $300k and up for singles and 500k and up for duplexes. Thx!

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John UnderwoodPro Member

Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes

To start with I would recommend the duplex as a long term rental. Learn the ropes on being a landlord then jump into the STR arena.

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Srini Murthy
GA · Member since 2015 · 67 posts · 17 votes
4y
Quote from @Aj Parikh:

I was also in a similar market like you where the 1% rule doesn't make sense but the properties appreciate a lot. I decided to go out of state in Cleveland, OH and purchased a SFH with a turnkey company. The numbers work better and the area has also seen a lot of appreciation since my purchase so overall a good experience. Let me know if you want to connect and chat about that.

I am interested AJ, can you please DM me?
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Todd Goedeke
Contractor · Sheboygan, WI · Member since 2016 · 921 posts · 266 votes
4y
@Nathan Gesner if you are a RE broker you should have knowledge about leasing. You can educate yourself by studying leasing in books or podcasts by prominent experts.
It will allow you to give more credible opinions about STVRs and their management.
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Matthew Hunter
New to Real Estate · Naples, FL · Member since 2021 · 5 posts · 0 votes
4y
Quote from @Travis Walker:

So I found a sfh with a pool no HOA that I will try STR and talked my dad into investing with me so it will only cost me $50,000 to get started. Hopefully I can learn the business with it for 6-9 months and then buy another after I get adept at it. So excited and nervous about jumping in. I'm entrepreneurial so I think I will enjoy STR more but we will see. I haven't closed yet but I do have questions about setting up an LLC. Can you set up your STR as an LLC while it has a mortgage?

@Travis Walker I'm not a pro at this, and every lender is different in the way they setup the loan with each individual, but from what I've read online, lenders have a clause somewhere in the loan terms that makes it a violation to put the property under an LLC. I think its considered the "subject to" clause, even though you are the owner/creator of the LLC, in the eyes of the contract it looks as if the property has transferred ownership, which is where it could possibly cause a problem. Again I'm not certain of this, and you would definitely want to check this with the lender you worked with, but hopefully this helps!
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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
4y
Quote from @Todd Goedeke:

@Nathan Gesner if you are a RE broker you should have knowledge about leasing. You can educate yourself by studying leasing in books or podcasts by prominent experts.
It will allow you to give more credible opinions about STVRs and their management.

Yes, I should read some books to learn about leasing. LOL!
The DIY Landlord Book4.7243 Reviews
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James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
4y
MF = better for cash flow.
SFR = better shot at cashing more profitably on resale.
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