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Sateesh Kumar
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Three SF vs Three homes in one lot which one is better?

Sateesh Kumar
Posted

Hello,

which one is a better option?

Three separate single family homes vs all three homes in one lot? What are some pros and cons.

Thanks

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  • Investor
  • Scottsdale Austin Tuktoyaktuk
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  • Investor
  • Scottsdale Austin Tuktoyaktuk
Replied
Quote from @Sateesh Kumar:

Hello,

which one is a better option?

Three separate single family homes vs all three homes in one lot? What are some pros and cons.

Thanks

First you have to find out if zoning allows 3 houses on one lot. Then, in the future, in order to sell, you have to sell all 3 houses with the lot. That may be difficult to do. And it's very hard to find financing for 3 houses on one lot so someone who would want to buy would probably have to pay cash or you would have to do owner financing. And it would be very hard to get comps in order to get a value.

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Theresa Harris
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#3 Managing Your Property Contributor
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Theresa Harris
Pro Member
#3 Managing Your Property Contributor
Replied

Are you referring to a triplex or literally 3 separate homes on one lot? A SFH will attract a different type of tenant than a triplex. Triplex, you are more likely to get a similar tenant as an apartment and you will have to do the yard work and snow clearing (if applicable). I'd also make sure each unit is individually metered and has their own laundry.

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    User Stats

    38
    Posts
    10
    Votes
    Sateesh Kumar
    10
    Votes |
    38
    Posts
    Sateesh Kumar
    Replied
    Quote from @Theresa Harris:

    Are you referring to a triplex or literally 3 separate homes on one lot? A SFH will attract a different type of tenant than a triplex. Triplex, you are more likely to get a similar tenant as an apartment and you will have to do the yard work and snow clearing (if applicable). I'd also make sure each unit is individually metered and has their own laundry.


     Yes , I meant three separate homes on one lot ,each with their own meters.

    User Stats

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    Theresa Harris
    Pro Member
    #3 Managing Your Property Contributor
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    Theresa Harris
    Pro Member
    #3 Managing Your Property Contributor
    Replied
    Quote from @Sateesh Kumar:
    Quote from @Theresa Harris:

    Are you referring to a triplex or literally 3 separate homes on one lot? A SFH will attract a different type of tenant than a triplex. Triplex, you are more likely to get a similar tenant as an apartment and you will have to do the yard work and snow clearing (if applicable). I'd also make sure each unit is individually metered and has their own laundry.


     Yes , I meant three separate homes on one lot ,each with their own meters.


    Unless it is a larger lot, I would still go for a SFH on its own lot.

  • Theresa Harris
  • User Stats

    38
    Posts
    10
    Votes
    Sateesh Kumar
    10
    Votes |
    38
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    Sateesh Kumar
    Replied
    Quote from @Theresa Harris:
    Quote from @Sateesh Kumar:
    Quote from @Theresa Harris:

    Are you referring to a triplex or literally 3 separate homes on one lot? A SFH will attract a different type of tenant than a triplex. Triplex, you are more likely to get a similar tenant as an apartment and you will have to do the yard work and snow clearing (if applicable). I'd also make sure each unit is individually metered and has their own laundry.


     Yes , I meant three separate homes on one lot ,each with their own meters.


    Unless it is a larger lot, I would still go for a SFH on its own lot.

    It's a 5000 SQ ft lot for three homes all homes disconnected from each other 

    User Stats

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    Theresa Harris
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    #3 Managing Your Property Contributor
    10,966
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    Theresa Harris
    Pro Member
    #3 Managing Your Property Contributor
    Replied
    Quote from @Sateesh Kumar:
    Quote from @Theresa Harris:
    Quote from @Sateesh Kumar:
    Quote from @Theresa Harris:

    Are you referring to a triplex or literally 3 separate homes on one lot? A SFH will attract a different type of tenant than a triplex. Triplex, you are more likely to get a similar tenant as an apartment and you will have to do the yard work and snow clearing (if applicable). I'd also make sure each unit is individually metered and has their own laundry.


     Yes , I meant three separate homes on one lot ,each with their own meters.


    Unless it is a larger lot, I would still go for a SFH on its own lot.

    It's a 5000 SQ ft lot for three homes all homes disconnected from each other 
    How big are the houses?  5000 sqft lot is 50x100-normal city lot.
  • Theresa Harris
  • User Stats

    38
    Posts
    10
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    Sateesh Kumar
    10
    Votes |
    38
    Posts
    Sateesh Kumar
    Replied
    Quote from @Theresa Harris:
    Quote from @Sateesh Kumar:
    Quote from @Theresa Harris:
    Quote from @Sateesh Kumar:
    Quote from @Theresa Harris:

    Are you referring to a triplex or literally 3 separate homes on one lot? A SFH will attract a different type of tenant than a triplex. Triplex, you are more likely to get a similar tenant as an apartment and you will have to do the yard work and snow clearing (if applicable). I'd also make sure each unit is individually metered and has their own laundry.


     Yes , I meant three separate homes on one lot ,each with their own meters.


    Unless it is a larger lot, I would still go for a SFH on its own lot.

    It's a 5000 SQ ft lot for three homes all homes disconnected from each other 
    How big are the houses?  5000 sqft lot is 50x100-normal city lot.
    They are between 800-900 sqft all 2 bed 1bath. 
    Appreciate if you can let me know ideally at what sizes (both square footages of units and lot sizes)
    would it makes absolute sense to buy independent 3 unit or 4 units in the same lot, I am even open to two homes in the same lot. I always thought buying multiple homes in the same lot is a great idea as opposed to buying single family homes in independent locations in the same city as it helps management much easier especially as a live in landlords, just trying to better understand the disadvantages 

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    Eliott Elias#4 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
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    Eliott Elias#4 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
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    • Austin, TX
    Replied

    It depends on what kind of deal you are being offered. 3 homes on 3 lots hold more value, 3 homes on one lot should result in a cheaper purchase price and lower ARV.

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    Theresa Harris
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    10,966
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    Theresa Harris
    Pro Member
    #3 Managing Your Property Contributor
    Replied
    Quote from @Sateesh Kumar:
    Quote from @Theresa Harris:
    Quote from @Sateesh Kumar:
    Quote from @Theresa Harris:
    Quote from @Sateesh Kumar:
    Quote from @Theresa Harris:

    Are you referring to a triplex or literally 3 separate homes on one lot? A SFH will attract a different type of tenant than a triplex. Triplex, you are more likely to get a similar tenant as an apartment and you will have to do the yard work and snow clearing (if applicable). I'd also make sure each unit is individually metered and has their own laundry.


     Yes , I meant three separate homes on one lot ,each with their own meters.


    Unless it is a larger lot, I would still go for a SFH on its own lot.

    It's a 5000 SQ ft lot for three homes all homes disconnected from each other 
    How big are the houses?  5000 sqft lot is 50x100-normal city lot.
    They are between 800-900 sqft all 2 bed 1bath. 
    Appreciate if you can let me know ideally at what sizes (both square footages of units and lot sizes)
    would it makes absolute sense to buy independent 3 unit or 4 units in the same lot, I am even open to two homes in the same lot. I always thought buying multiple homes in the same lot is a great idea as opposed to buying single family homes in independent locations in the same city as it helps management much easier especially as a live in landlords, just trying to better understand the disadvantages 

     Buying one building with 3 units (ie 3 units all under the same roof) has the advantage that you have one exterior, one roof, etc  to take care of.  With three separate buildings on one lot, you have smaller units, 3 roofs, 3 exteriors, etc and then three tenants all using one yard for which no one is responsible (the last two are the same regardless if it was one building with 3 units or 3 separate units on one lot).

  • Theresa Harris
  • User Stats

    38
    Posts
    10
    Votes
    Sateesh Kumar
    10
    Votes |
    38
    Posts
    Sateesh Kumar
    Replied
    Quote from @Theresa Harris:
    Quote from @Sateesh Kumar:
    Quote from @Theresa Harris:
    Quote from @Sateesh Kumar:
    Quote from @Theresa Harris:
    Quote from @Sateesh Kumar:
    Quote from @Theresa Harris:

    Are you referring to a triplex or literally 3 separate homes on one lot? A SFH will attract a different type of tenant than a triplex. Triplex, you are more likely to get a similar tenant as an apartment and you will have to do the yard work and snow clearing (if applicable). I'd also make sure each unit is individually metered and has their own laundry.


     Yes , I meant three separate homes on one lot ,each with their own meters.


    Unless it is a larger lot, I would still go for a SFH on its own lot.

    It's a 5000 SQ ft lot for three homes all homes disconnected from each other 
    How big are the houses?  5000 sqft lot is 50x100-normal city lot.
    They are between 800-900 sqft all 2 bed 1bath. 
    Appreciate if you can let me know ideally at what sizes (both square footages of units and lot sizes)
    would it makes absolute sense to buy independent 3 unit or 4 units in the same lot, I am even open to two homes in the same lot. I always thought buying multiple homes in the same lot is a great idea as opposed to buying single family homes in independent locations in the same city as it helps management much easier especially as a live in landlords, just trying to better understand the disadvantages 

     Buying one building with 3 units (ie 3 units all under the same roof) has the advantage that you have one exterior, one roof, etc  to take care of.  With three separate buildings on one lot, you have smaller units, 3 roofs, 3 exteriors, etc and then three tenants all using one yard for which no one is responsible (the last two are the same regardless if it was one building with 3 units or 3 separate units on one lot).

    Thank You! It makes sense now. Between a triplex or fourplex on one lot vs a single family on one lot which one do you think will be a better option? Just trying to understand which one would make more sense in an appreciating market like CA.