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ForumsArrowFresno Real Estate ForumArrowSFR Vs. SMFR ( 1st Investment Property)
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SFR Vs. SMFR ( 1st Investment Property)

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  • Posts 11
  • Votes 2

Deandre Lee
New to Real Estate from Fresno, CA

posted 12 months ago
So BP i was wondering which would be better as a first investment property? Also which strategy would a Lender be more flexible on.. based on credit score..ect
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  • Posts 4
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Zeb Wallace
Investor from Pasadena, California

replied 12 months ago

I prefer Multifamily to SFR. I'm a buy and hold investor and I hire management companies to manage my properties. If you're talking about MFR with 4 units or fewer, I believe you would typically find more bank flexibility for SFRs. But since I presume you're not going to live in the SFR, there may not be much, if any, difference in how the bank views the two (the bank will view both as non-owner occupied investment properties).

You may want to explore House Hacking (living in one unit and renting the others) to try and get the bank to give you owner occupied rates.  That’s how I started out. 

If you’re talking about a multi-family residence with five or more units, the bank will typically place more of an emphasis on the economic performance of the property, and less of an emphasis on you as a borrower. 

Hope this helps. 

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  • Posts 11
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Deandre Lee
New to Real Estate from Fresno, CA

replied 12 months ago

Yeah Thank You, Zeb, currently I'm looking into a SMFR with 4-Units possibly to House Hack in. Also I brought the audiobook "The House Hacking Strategy" hoping to learn more on the best ways for it to work and put them in action, I really appreciate the advice Zeb. 

Now I have to connect with with a Lender to present a deal and get help me get started 

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