It seems that the few books that I have read so far suggest rehabbing single family properties. However, in my area there seem to be many more 2 or 3 unit buildings in need of rehab than single family homes. My question is have any of you profited from rehabbing multi-unit properties? Also, it looks like any HMLs that I have looked into so far want previous experience with rehabbing. How do I find a good HML that works with beginners? In NY (upstate)?
My bank will not lend money on anything over 2 units. The 2nd property I bought was a 3 unit. However, I rehabbed and kept the property as a rental.
Keep in mind that normally, the resale market for multi unit properties is smaller than single family properties. Just about everybody wants a single family home.
Normally, only RE investors (landlords notably) are interested in duplexes, triplexes, and quadplexes, with a few people who are willing to live there in exchange for someone else making their payments.
My HML just did a 31 unit deal and I am making a great profit selling it and would keep it if I could get long term financing in my name. I like doing multi units because you can rent them after the rehab and not have as much carrying costs, You can sell them without worrying as much about vandalism as well since they will be occupied. You may be able to flip them to another investor to fix and keep as well. Landlords are willing to do repairs to buy rental and most homeowners are not. One draw back is you have to be a landlord which can be unpleasant at times. Just a few pros and cons and hope it helps.
Thanks for the advice. I hadn’t considered the pros of being able to rent until you sell. Now all I have to do is find a HML. I’m getting some experience as a landlord now with my duplex. This first year I’ve had great tenants, but they are moving now (done with college). Hope I can find some more great ones.