SFH or Multi Family? - First Time Buyer
Hey folks -
So I'm looking to make my first RE purchase and want it to be an investment property. I have a decent sum of money saved for the follow two options. My question to you is, which do you think is the best route i should take especially starting out! I'm leaning towards option two for obvious reasons with bigger income but thinking option 1 may be safer with less tenants to deal with, less money to spend on down payment etc. Both options, Im looking to do in Charlotte, NC.
Option 1. Buy a SFH or apartment and rent to a small family in suburban area of Charlotte. Aim to have $30-40K as a down payment and rent for approx $1000-$1200. This option gives me less people to worry about, smaller down payment / personal money invested but lower monthly CF. Decent tax savings.
Option 2. Buy a Multifamily unit (4 plex) in a similar area/university area. Aim to have $60-70K as a down payment and rent for approx the same. This option gives me more people to worry about, larger down payment / personal money invested but larger monthly CF. Decent tax savings.
The numbers are not accurate, just used as an example but I'd love to hear your thoughts on which route you would pursue and why? I'm wanting to be sure there isn't something I'm not paying attention to! As a first time buyer, I'm thinking I should be learning my mistakes on a smaller property such as the SFH but having said that, am eager to get some real cashflow moving and start banking decent profits to purchase further properties.
Regards,
Colin
So I'm looking to make my first RE purchase and want it to be an investment property. I have a decent sum of money saved for the follow two options. My question to you is, which do you think is the best route i should take especially starting out! I'm leaning towards option two for obvious reasons with bigger income but thinking option 1 may be safer with less tenants to deal with, less money to spend on down payment etc. Both options, Im looking to do in Charlotte, NC.
Option 1. Buy a SFH or apartment and rent to a small family in suburban area of Charlotte. Aim to have $30-40K as a down payment and rent for approx $1000-$1200. This option gives me less people to worry about, smaller down payment / personal money invested but lower monthly CF. Decent tax savings.
Option 2. Buy a Multifamily unit (4 plex) in a similar area/university area. Aim to have $60-70K as a down payment and rent for approx the same. This option gives me more people to worry about, larger down payment / personal money invested but larger monthly CF. Decent tax savings.
The numbers are not accurate, just used as an example but I'd love to hear your thoughts on which route you would pursue and why? I'm wanting to be sure there isn't something I'm not paying attention to! As a first time buyer, I'm thinking I should be learning my mistakes on a smaller property such as the SFH but having said that, am eager to get some real cashflow moving and start banking decent profits to purchase further properties.
Regards,
Colin