Good Day all,
I am new to the web site and forum, so please bear with what may be a ‘101’ question. I am looking to hear both sides of the ‘argument’ as my lender seems convinced that on the whole, multi family flips are safer bets but I find myself passing on seemingly viable single family deals.
Comments please
A deal is a deal. However, with flipping, there are some distinct differences between SFR and multi_
There are lots more SFR and a lot fewer Multis - both in availability to buy as well as investors who will buy. So there is less of a chance overall of being stuck because you can’t find a buyer.
SFRs generally priced based on retail since they primarily have Owner Occupant value. Multis generally are cheaper because they are purer investments.
Financing for SFRs is generally easier and with better terms than with multis.
In many areas - SFRs are treated better as far as tax rates and landlord-renter regulations.
The types of people who buy multis are much more specialized than SFR buyers.
Are you planning on doing wholesale deals or are you planning on buying and flipping? If you are doing wholesaling then it doesnt really matter because you are only putting homes under contract that are already sold.
if you are doing flipping then you will want to evaluate what type of home is selling best in your market place.
thank you both salverston and eric, regards.