Three SF vs Three homes in one lot which one is better?
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
#2 Managing Your Property Contributor
- Investor
- Scottsdale Austin Tuktoyaktuk
- 3,768
- Votes |
- 3,876
- Posts
#2 Managing Your Property Contributor
- Investor
- Scottsdale Austin Tuktoyaktuk
Quote from @Sateesh Kumar: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.
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
#3 Managing Your Property Contributor
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.
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.
#3 Managing Your Property Contributor
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.
Quote from @Theresa Harris:It's a 5000 SQ ft lot for three homes all homes disconnected from each other
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.
#3 Managing Your Property Contributor
Quote from @Sateesh Kumar:How big are the houses? 5000 sqft lot is 50x100-normal city lot.
Quote from @Theresa Harris:It's a 5000 SQ ft lot for three homes all homes disconnected from each other
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.
Quote from @Theresa Harris:They are between 800-900 sqft all 2 bed 1bath.
Quote from @Sateesh Kumar:How big are the houses? 5000 sqft lot is 50x100-normal city lot.
Quote from @Theresa Harris:It's a 5000 SQ ft lot for three homes all homes disconnected from each other
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.
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
#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Investor
- Austin, TX
- 5,364
- Votes |
- 9,771
- Posts
#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Investor
- Austin, TX
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.
#3 Managing Your Property Contributor
Quote from @Sateesh Kumar:
Quote from @Theresa Harris:They are between 800-900 sqft all 2 bed 1bath.
Quote from @Sateesh Kumar:How big are the houses? 5000 sqft lot is 50x100-normal city lot.
Quote from @Theresa Harris:It's a 5000 SQ ft lot for three homes all homes disconnected from each other
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.
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).
Quote from @Theresa Harris:
Quote from @Sateesh Kumar:
Quote from @Theresa Harris:They are between 800-900 sqft all 2 bed 1bath.
Quote from @Sateesh Kumar:How big are the houses? 5000 sqft lot is 50x100-normal city lot.
Quote from @Theresa Harris:It's a 5000 SQ ft lot for three homes all homes disconnected from each other
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.
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 disadvantagesBuying 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.