Enough politics and religion for a minute. I know there's people here that are experienced real estate investors. I have one rental property, a condo, in FL which is doing well, but I'm interested in moving to the next level with my real estate investments.
Here's my question...should I go duplexes/multifamily, or single family? Pros/cons of each? I'm not looking to make a fast buck, but would like at least a small positive cash flow--at least to break even monthly. Any experience advice is appreciated.
Posts: 722 | From: Richmond, Va , USA | Registered: Mar 2004
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Just to add...I'm currently 30 and would like to stop working for the man by the time I'm 40.
Posts: 722 | From: Richmond, Va , USA | Registered: Mar 2004
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Hey Ramius, I hear you on the politics and religion! I don't have any real experience in real estate investing, I'm still working to get where you're at, but I have noticed that in the areas where I've lived duplexes rent for almost as much as an older three bedroom house. The downside would be twice as many renters to deal with, unless you get lucky and rent to good people. Good luck!
Posts: 1235 | From: Anacortes, WA | Registered: Apr 2005
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quote:Originally posted by Dustoff101: Tri-plex, rent two, live in one.
I'm all for that, living in one that is, but convincing my princess wife would be difficult. It think duplex's are good because even if one side is empty at least there's some income to cover expenses. With a house if it's not rented you're stuck holding the whole bag. Of course, with houses, it's probably easier to sell if you needed to "cash out" quickly.
so many variables.
Posts: 722 | From: Richmond, Va , USA | Registered: Mar 2004
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heres my opinion. i would buy a single family house.. they are in larger demand (for resale) and usually they attract better tenants than the typical multi unit building because they have families and need more stability and room. Also when buying multi unit buildings you are almost surely dealing with a seasoned real estate investor who wont give as good a deal because they are looking to profit. Also selling a multi unit you will most likely be dealing with a experienced buyer as well and probably a good negotiator and if times are tough you might sell for a loss in order to avoid the monthly payments. For these reasons i would say buy a house, its easier to find the deals from distressed sellers and also easier to liquidate later. JMHO good luck whatever you choose.
-------------------- "Gentleman, you have come sixty days too late. The depression is over." Herbert Hoover 1930 Posts: 678 | From: currently in hiding due to investigation | Registered: Oct 2004
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Turbokid, location location location. Also creative tax deductions in a multi, when ya live in one.
You can cherry pick tenants if you do it right. Landlord on premises can attract a higher quality renter. People also tend to deliever the rent in person and on time.
I have seen young folks use the tri-plex investment to build a base for a successful realestate strategy...
Families can be your worst nitemare in the rental buisness.
When buying a distressed property? Remember you get what you pay for. Sometimes hidden problems can really put a strain on what you thought was a good deal.
The biggest problem I have now is that in Richmond housing costs have risen in the past few years significantly faster than rental rates. This means I could buy a house or duplex, but don't have a prayer for covering expenses with rents unless I put a amount of money down to lower the mortgage. Of course there are exceptions, buy one that needs work, or a foreclosure. Generally, you can't touch a 3/2 house in the richmond area for less than $160,000, and rents max around $900, if you're lucky.
I've done some checking in other cities where I have family living. I could buy a nice duplex for $145,000, and each side is renting for $725. That's more like what I'm looking for.
Not sure what I'll do yet. Almost seems like I'm better off to look in other cities and hire a management company.
Posts: 722 | From: Richmond, Va , USA | Registered: Mar 2004
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Something else to consider, many may have good arguments against this, but you might play the patience game on this; as the feds will probably continue to raise interest rates at least once more people who got into their home or investment property with adjustable rate mortgages may not be able to afford their increasing monthly payments. As a result we may see an over-inventory of houses on the market this year, possibly resulting in a flattening or slight decrease in prices. Might be worth the wait.
Posts: 1235 | From: Anacortes, WA | Registered: Apr 2005
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quote:Originally posted by LEO: Something else to consider, many may have good arguments against this, but you might play the patience game on this; as the feds will probably continue to raise interest rates at least once more people who got into their home or investment property with adjustable rate mortgages may not be able to afford their increasing monthly payments. As a result we may see an over-inventory of houses on the market this year, possibly resulting in a flattening or slight decrease in prices. Might be worth the wait.
That's a good point, I know 4 or 5 people I work with who bought houses they really couldn't afford using ARM's. In a few years they'll be screwed.
Posts: 722 | From: Richmond, Va , USA | Registered: Mar 2004
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quote:Originally posted by LEO: Something else to consider, many may have good arguments against this, but you might play the patience game on this; as the feds will probably continue to raise interest rates at least once more people who got into their home or investment property with adjustable rate mortgages may not be able to afford their increasing monthly payments. As a result we may see an over-inventory of houses on the market this year, possibly resulting in a flattening or slight decrease in prices. Might be worth the wait.
You Hit it right on the nose. Might get 5 to 5.50 Fed Funds rate before they actually do stop resulting in the 30 yr fixed going over 7%, ARM'S Being over 8.50 %. There will be alot of forclosures in the next 18 months or so. I sold 4 propertys in the last 2 yrs because of the Hiking that is going on. I'll be reentering within the next 18 months this time on the Buying side and Renting the Houses out.
Fed Fund Rate being hiked up and Our Debt will bring uncertainty back to this market, and The CPI will plummet soon afterward. Jobs rate will slow/ or be stagnated for much of 06 this is why Gold/Silver are in a rally mode. This will be all common within the next 18 months or so.
JMHO!
Posts: 541 | From: Virginia | Registered: Nov 2005
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