New Member Post and a Question

[Max Uyeda]

Hi BiggerPockets community. Thank you for making such a great place for so much information. I became interested in real estate investing a couple weeks ago, so I am brand new to this thing. My goal is long term holding to build retirement income. I'm currently 34. Maybe someone can give me insight into a question I have. 

I am wondering if I should start with SFR or multiunit. I just finished Brandon's book "book on rental property investing." It highlights challenges with investing out of state. I live in Hawaii, where none of the math looks like it will make sense to invest here. My plan is to invest out of state with a very strong management group. I was looking into REI Nation, and have seen good reviews, but they only do SFR and I'm wondering if my capitol would be better spent on multiunit instead of SFR. I have about $400,000 to invest. I could probably get up to $600,000 with family help. Any thoughts on if I should go the multi-SFR refinance route, or if I should use that as a down payment for a larger multiunit property? I'm guessing that refinancing and repeating with SFR is stronger than being tied up in one property but I could use some experienced feedback. Any advice would be great, thank you. 

[Mike Paolucci]

Quote from @Max Uyeda:

Hi BiggerPockets community. Thank you for making such a great place for so much information. I became interested in real estate investing a couple weeks ago, so I am brand new to this thing. My goal is long term holding to build retirement income. I'm currently 34. Maybe someone can give me insight into a question I have. 

I am wondering if I should start with SFR or multiunit. I just finished Brandon's book "book on rental property investing." It highlights challenges with investing out of state. I live in Hawaii, where none of the math looks like it will make sense to invest here. My plan is to invest out of state with a very strong management group. I was looking into REI Nation, and have seen good reviews, but they only do SFR and I'm wondering if my capitol would be better spent on multiunit instead of SFR. I have about $400,000 to invest. I could probably get up to $600,000 with family help. Any thoughts on if I should go the multi-SFR refinance route, or if I should use that as a down payment for a larger multiunit property? I'm guessing that refinancing and repeating with SFR is stronger than being tied up in one property but I could use some experienced feedback. Any advice would be great, thank you. 

 Hey @Max Uyeda. Welcome to BP! I'm a big fan of SFR as a starter investment. Less wear and tear, more desirable and appreciate better than MFR. It's a great asset to learn whether or not REI is right for you and offers a better opportunity to sell if you decide it's not the right fit.

Investing out of state can be a little intimidating but is definitely doable. I started off as an OOS investor living in San Francisco back in 2021. 

Make sure you look at the economics of the specific markets you're targeting. I'd target a market with plenty of economic growth and flexibility going into the future. 

Multifamily units are great for cashflow and better bang for your buck but come with a different set of potential issues than single families do.

Either way, you'll want to have your local teams in place with the knowledge and connections to help you succeed. Property manager will be your best friend and it's important to do your DD on them as well as anyone you decide to work with. 

Happy to answer any questions you might have about the journey and share the mistakes I made along the way. Good luck with your investing journey!!