@Phyllis Jones have you spoken with a mortgage broker/lender already? You mentioned that you have the 25-30k for the down payment. Do you plan on managing the property yourself? If the numbers don't match your criteria on any project, I would say move on to the next one. As you'll hear over and over, the numbers have to make sense for you.
@ Dan Barli i do understand the numbers have to add up. What's your thought on buying SFH being my first investment? I would definitely have to have a property management team being I'm 2 hours away.
@Phyllis Jones I guess I'm not familiar with the reasons to not purchase a house that has tenants? I would imagine if you are going to buy you should be able to ask for the rent roll and copy of the lease. If those things look good, then its already cash flowing why not? Of course I'd definitely recommend thoroughly vetting your PM company as you'd be relying on them heavily. So understand their reputation, processes, etc and become comfortable with that. As a first property and to get the feel I would think a SFH is a conservative and normal approach, it doesn't have the potential cash flow of a MFH but also with that potential comes more risk, more costs and multiple tenants to juggle. Depends on your strategy and if its just to get your foot in the door SFH could be the way.
@Phyllis Jones , I am a new investor as well. I am not going to debate the SFR vs multi-family, but I prefer to have tenants in place when I purchase. My area of town may not be your area of town. I am in C areas until I can move up. I too have the same amount of money as you (lines of credit) and I am trying to close on a four unit soon.
If your philosophy and comfort zone are SFR rather than multi-family, then stay with that and stay with your numbers. One thing that you might try, is to call PM companies and ask if they know any SFR owners who might be thinking about selling. I have found off market deals that way.
I love how BP members share their experience.
@Darrell Bratton thank you so much. My preference is a duplex or quad but finding one in price range is a little difficult. I guess I need to be more patient an hope something will pop up. I did find one but numbers wasn't matching so I passed. I'm seeing a lot of SFR that are section 8 with tenants in place. I wanted to dive in a maybe get 2 until I'm able to find me a quad or duplex. Guess I need to be more patient.
Please keep up updated on how you found your deals. I am going to try direct mail marketing in the near future. Even though I am buy and hold, I am looking for off market deals and if it is something that I do not want, I can wholesale it. I have about 6 six side hustles and this will be 7. A college professor can only do so much.
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