Both can be great. It all depends on what you want to get into. You could buy a SF and then later buy an MF and decide which route you want to go from there. This seems to be how a lot of people choose which they like better.
Are you looking in the Brighton/Howell area? Why did that duplex deal fall through?
My last deal fell through because my lender was on vacation and took to long to get my preapproval letter. I went to put in an offer only to find out that one had been accepted that morning. Basically bad timing but it happens. I was looking in Dearborn Heights as the cashflow seems to be better out there than in Brighton/Howell. I live in Brighton currently. The price point seems to be high for newer investors like myself unless I was to house hack or purchase a new primary and rent out my current home. I'm looking for higher cashflow as I don't want to bet on appreciation although I believe Brighton and Howell will continue to appreciate at a solid rate.
I just moved from Howell to Holt. I lived in Wixom for a year before Howell. Howell/Brighton is going to keep growing. Southeast Michigan has no-where else to go but that way! I think it would be awesome to get a deal in that area.
I like the small multiunits, especially if you look to grow to get more units. Keeping under a 4 unit multi will be the same process if you are to mortgage. So to me if your going the route of getting simple and easy bank mortgages why not maximize your income with more tenants.
Turnover maybe more i guess, but if you are in a B class areas I dont not see the vacancy rate being very long. With more than one tenant in a multi, you essentially will be in a position that a building would never be vacant and relying on one rent check to pay the bills. Also making it simpler for yourself and/property manager by keeping tenants in one place, one yard, one garage, one furnace, one roof etc.. That just make life that much easier
Just my thoughts. I own both single and multiunits. They both have pros and cons. Maybe a different tenant type and situation but your in a B class neighborhood..
60k homes in a B class neighborhood in SE michigan, I would like to know more lol
@Joe Fornasiero Look for both SFR and multi. When you find a good deal jump on it. As you start investing you will learn what suits you best. Most likely you will enjoy both. That way you are not passing on good investments. Down the road if you decide you prefer one over another you can always rebalance your portfolio.
http://detroitpropertybrothers.com | MI Agent # 6501395686
@Joe Fornasiero I think Dearborn Heights probably has some good properties to look at but why overlook Brighton and Howell if that is your backyard? There are still good deals to be had there and being local has a definite advantage from a management perspective if buy and hold is your strategy.
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