I was wondering how different is it to own a Multi-unit rental property (A fourplex) compared to a single family rental?
I believe investing in multi-units leverages my time a lot better than buying single family homes? am I wrong for saying that? What are the differences in both other then more tenants? Is there something I should watch out for in advance
before purchasing such a place? Any positive/negative experiences that people would like to share would be greatly appreciated. Thanks again.
Tenants that live in SFH are just tent to live longer in a a house, rather those tenants from 4-plexes. About half of the tenants use MFH for temporary place to live (usually not more than a year) I don’t think you’ll like the idea interviewng new tenants each year and do the rehabing work once they moved out.
P.S. I’m also looking for a multifamily deal in my area, since SFR do not produce enough income to cover mortgage payments
Where are you located? I’m in the northwest, (Seattle). I got quite a few leads for Multi family. Work with a
Real Estate agent that deals with investors if you don’t already, (Most Multi residences are owned by investors so becareful that you are not buying someone else’s headache).
I live in seatac, right by the airport. It’s nice to meet someone from the same area. I’m in the process of getting my real estate agent license and i have an access to the NWMLS website. I’ve looked through a lot of multifamily properties, but i have to come up with good downpayment in order to cover for debt service. How long you’ve been investing in RE?
I’m a newbie so far and I’m just getting started. I have read some real estate books and I have some investor friends that are already in the game so they mentor me. I haven’t gone to any of the clubs yet have you? here is the website:
I’ve visited that website before and i was thinking about joining in. Right now i’m working to setup LLC company and try to obtain some LOC from some bankers that i know. I’m currently in the process of refinancing and have to wait for a month or so, before i apply for more credit. I saw some of the multifamily units that are below market, but they require thoral inspection and major upgrades. What do you know about short sales? BTW, some banks require LLC agreement, do you have a sample agreement?
I haven’t decided on going LLC yet but I will in the future once I have a good amount of properties under my wing.
I will probably join the club in the coming weeks. I want to be around people in the industry as well as people that
has invested for many years. I can shut my mouth and learn something from them.
As far as Short Sales are concerned I haven’t but message REO Consultants (He’s a moderator) His name is Rob
he’s a pretty nice guy and he will tell you all you need to know about short sales.
Rolyn…First thing…get your LLC’s started…once you buy your 1st property put it in there… The purpose of the LLC is to protect your personal assests from the greedy dumb tennants that decide to get hurt and sue you in court since they see you and a money machine since you own real estate. I recommend setting up in NV, but everyone has different taste I have noticed.
Now as for what to buy…SFH or MFH…each has its own perks and downsides…
Perks:
SFH:tennants do stay longer and resale value increased better and easier to sell and many tennants may want to buy, you can do lease option or just look for end users when ready to sell…
MFH: 2-4 tennants in place paying the mortgage can bring in stronger cashflow and if 1 unit is vacant, will generally not put you into negative cashflow for month.
Downside:
SFH: only 1 tennant, it they do not pay your covering the full mortgage, many good bargins need alot of rehabs to create cashflowing units…
FMH: tennants stay shorter time, harder to sell when its time to get out, more likely to have tough renters as not in good family areas generally…Since your inexperienced, may have problems managing property yourself with 3 or 4units…