Questions for you guys.
which is cheeper, buying (4) single-homes or (1) 4-plex or building a brand new 4-plex town house.
I was planing to do a lot of fixer-upper and flip and selling for the next a few years and gain the down payment about 20%, then build a brand new 4-plex town house by cheep deal builder. I thought that will end up cheeper than buying existing 4-plex or (4) single homes. they are existing so they need to be fixed and if they are cheep houses, I might not get a good renters to keep… what do you think guys?
Too many variable to answer…
Keith
Hold on, while my head stops spinning. I must be getting old because I need you to break this down a little.
I don’t know that there is a easy way to answer the question. I don’t know that you can answer that question.
my basic question is that which is cheeper between buying existing rental properties or building as new construction. I always thought building home is cheeper than buying very landappreciated homes.
are you following? or am I confusing everybody here?
That was my frustration, Mark…
Too many variables in the equation…where is it? what is the market like? how big are the individual units in the 4-plex? can you find similar sized SFH to compare against? etc., etc., etc.
To answer this, you need apples-to-apples data…
Here in this area, it is cheaper to buy the 4-plex but that will get you four 2/1 about 650 sq ft each…there aren’t all that many small 2/1 SFH that are decent in the same price range…
Do you really want an answer or an affirmation to buy or build a 4-plex?
Keith
let’s say they are all same sizes. I’d like to built 4-plex townhouse near college area. but if I am going to own (4) single houses, there are pretty much everywhere, but they should be in the same city and similer market value.
I wanted to do fixer-upper and sell to gain capital for a while and then even put my house for sale and put every cash together to put 20% down payment for new construction of 4-plex townhouse. I thought that will be cheeper idea than buying a single house a next 4 years as far as cost wise. ???