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.
 

---

Posted by turbokid on :
 
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.
 

---

Posted by Dustoff101 on :
 
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.

[ January 09, 2006, 07:31: Message edited by: Dustoff101 ]
 

---

Posted by Ramius on :
 
All good points...

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.
 

---

Posted by LEO on :
 
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.
 

---

Posted by Ramius on :
 

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.

---

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.

---