is it better to buy a 2or 3 family unit ?

is it better to buy a 2or 3 family unit ?

Investor · Member since 2020 · 8 posts · 0 votes

hey. Im looking to buy my very first property within the next 3-6 months. I live here in NYC and wanted to know is it better to purchase a 2 or 3 family home ? I'm thinking a 3 family will cashflow better . I'm going to be looking anywhere between NJ and CT for a property and continue to educate myself on both.. Any advice is much appreciated!!!

Also , are there any areas of NJ and CT you recommend I stay away from?

thank you in advance !!

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Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
6y

Most 3 units are a duplex with finished attic - and come with a number of issues on the peripheral infrastructure like parking, laundry and storage space. Make sure the 3rd has two froms of fire egress. 

Also most attics are finished as a "hot roof" - insulated tight against the sheeting, but often not well done, rather warm in the summer, also shortening the life of the shingles, making roof leaks hard to detect and costly to repair.

None of these issues apply on a real 3 unit, which was built this way.

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  • Real Estate Consultant · Brookfield, WI · Member since 2014 · 873 posts · 350 votes
    6y

    What I found in Milwaukee, WI is that 3-family are hard to come by and they are usually priced like a 4-family without the income. If you can find one where the numbers work go for it. 

  • Member since 2020 · 14 posts · 8 votes
    6y

    Numbers is where it matters. Does the numbers make sense for you?

  • Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
    6y

    Most 3 units are a duplex with finished attic - and come with a number of issues on the peripheral infrastructure like parking, laundry and storage space. Make sure the 3rd has two froms of fire egress. 

    Also most attics are finished as a "hot roof" - insulated tight against the sheeting, but often not well done, rather warm in the summer, also shortening the life of the shingles, making roof leaks hard to detect and costly to repair.

    None of these issues apply on a real 3 unit, which was built this way.

  • Real Estate Syndicator · Milwaukee, WI · Member since 2018 · 1k+ posts · 907 votes
    6y

    I like to have as many units as possible under one roof.  You should look all the way up to 4 units.  4 units and under allows you to take advantage of residential financing options.

  • Flipper/Rehabber · Milwaukee, WI · Member since 2016 · 153 posts · 84 votes
    6y

    @Mathew Fuentes obviously deal dependent but the more units under one roof the better IMO

  • Investor · Member since 2020 · 8 posts · 0 votes
    6y

    Thank you all for your responses.  I really appreicate it 

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