I am looking to buy my first property and I have mostly focused on single families, but have been thinking more about Multi-families of late, especially after listening to Bigger Pockets podcasts for the past couple weeks. I found a 2-family listing that looks pretty good, it is located in a single family neighborhood and it looks like it is the only multi- in the neighborhood; is that a good or bad thing? Are there any potential drawbacks I should be aware of for being the only multi in the neighborhood? Thanks in advance for any advice!
Welcome to the vibrant BP community. Ok, now that you have taken your initial step, below are some quick links to get engaged.
Since you are focused on multifamily units I added the below links for your review.
https://www.biggerpockets.com/renewsblog/2013/04/09/how-to-buy-a-small-multifamily-property/ (How to buy a smail multifamily property)
http://www.biggerpockets.com/renewsblog/2014/07/19/how-to-buy-a-duplex/ (guide to buying a duplex)
https://www.biggerpockets.com/renewsblog/2015/11/16/how-to-choose-areas-multifamily-deals/ (Choosing multi-family deals)
Actually, with regard to the multifamily unit being the only one in the neighborhood could be looked at as being positive, due to the fact that tenant competition is non-existent with other multifamily properties.
- How to Use @Mentions on BiggerPockets
https://www.biggerpockets.com/real-estate-investing (Ultimate beginner's guide to REI)
REI can be very daunting, but, before you go searching for that 1st buy, please take a few minutes to bone up on the tips in link below.
REI books suggested by BPers
https://www.biggerpockets.com/renewsblog/2015/11/13/7-real-estate-books-beginner-investors/ (7 absolute must read books for beginner REI)
Simply, bone up on the areas that you need to expand knowledge in such as, Forums, Marketplace, Learn, Network, Analyze and Resources.
Feast on the Podcasts, #askbp Podcasts, blogs and webinars
Lastly, this site thrives on interactions and as such we encourage two way exchanges and look forward to educational and thought provoking ideas relevant to REI.
I'm still new but I've been searching duplexes and fourplexes. In my area I've found that many (not all) MF properties that are "mixed in" SFH neighborhoods are nicer (and pricier) than those clumped in a pocket of MFs.
My advice (as a newb) is that if the numbers work it could be an excellent opportunity, but make sure the cash flow works with both sides rented out (non-owner occupied) and with property management fees. Otherwise you might be getting into a trap.
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