Advice: Start small single-family, or start small multi-family?
We are relatively new to real estate. We’ve owned two rental properties one of which we recently cashed out of. We decided to pay off some old debt and we have about $5000 liquid cash left to reinvest. We found a couple of deals including a single family home priced well bellow tax assessment with lots of updates and with a little TLC it will have about $35000 in equity and will cask flow $210 off the bat. Its also a 3 br brick rancher. The other deal is a duplex in a busy growing area close to shopping, transit, travel etc. The asking price is $121000 and it hasn’t been updated since the 80’s. I’m pretty sure I can get them down on the price and will definitely meet the 1% rule. I’m sure that with some forced appreciation and a few updates we can rent each side for $650-$700. Also it’s in a development which could lead to future ownership of other units adjacent to the property. Only thing is, we will need to borrow equity from our other property to purchase the duplex. What would you guys do?