Advice on investing in R.E. for the first time

Advice on investing in R.E. for the first time

GOODYEAR, AZ · Member since 2015 · 11 posts · 5 votes

So my question is that I'm torn between house hacking or just buying a fixer upper. I'm a veteran who is graduating with my B.S. this Friday. So it's time to return to the real world and I am starting the search for a place to live that will also start my investing. I live in Phoenix, AZ and I have pre qualified for 190k. I'm just looking for other investors points of view and advice. Whether I should go the multi-family route (more difficult to find in Phoenix) or find a fixer upper SF home and do the remodel myself and move on in a couple years keeping it in the portfolio? Any thoughts would be greatly appreciated.

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Residential Agent And Investor · Scottsdale, AZ · Member since 2013 · 212 posts · 83 votes
10y

I see more potential in the single family route. I think there is a lot of upward price pressure on homes between $150-200k and you're bound to see some appreciation. Plus you can rent out rooms in your house to generate some passive cashflow and help pay your mortgage.

I think multi-family is terribly overpriced and you may not want to live in the kind of area that a $200k duplex/triplex would afford you.

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  • Real Estate Consultant · Camarillo, CA · Member since 2010 · 2k+ posts · 1k+ votes
    10y

    Funny I just read this as I landed in Phoenix. I skipped straight to MF but out of my state of CA.  I prefer MF but it may mean partnering with someone.

  • Residential Agent And Investor · Scottsdale, AZ · Member since 2013 · 212 posts · 83 votes
    10y

    I see more potential in the single family route. I think there is a lot of upward price pressure on homes between $150-200k and you're bound to see some appreciation. Plus you can rent out rooms in your house to generate some passive cashflow and help pay your mortgage.

    I think multi-family is terribly overpriced and you may not want to live in the kind of area that a $200k duplex/triplex would afford you.

  • GOODYEAR, AZ · Member since 2015 · 11 posts · 5 votes
    10y

    I hear ya Matt, that is what I have been noticing looking at the market here in the Phoenix area. I can find and get allot better deals taking the SF route and just not finding any deal MF.  

  • Joseph CatalanoPro Member
    Rental Property Investor · Lewiston, NY · Member since 2014 · 192 posts · 97 votes
    10y

    @Shawn Hughes if I had it all to do over again I would have housed hacked in law school or even college.  I agree the multi-family will be out of your range the area you are in,  I a few friends who live there and they tell me how expensive real estate is getting.  

    I am a fan of the house hack.  I am trying to convice my younger brother to get into as soon as possible.

    Good Luck.

  • Real Estate Agent · Westboro, MA · Member since 2016 · 1k+ posts · 471 votes
    10y

    Welcome @Shawn Hughes

    Personally, I am looking to house hack- I would set up daily listings from the MLS and begin to analyze deals. Get prequalified so you know what you can offer on a house. It depends on your market and if SFR numbers work better, then go with it

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