I am thinking of buying my first time investment property.
The options are
1> buy x number of single family homes (probably through auctions etc) most likely in one area
2> buy one multi-residential property.
Would option 2 be easier for managing since it will be one place?
How would operational/maintenance costs compare? I hear reading from posts that these
costs could go to 50% and i was surprised.
i am planning on using property management company either way.
I think i got my answers reading some posts that multi-residential is better. I was planning on buying with 100% cash but it seems that may not be a good idea esp if sued by one of the renter due to accident etc.
Thanks dang. Yes i am a busy professional and would not like to deal with hassles
of property management. i am looking for cash flow and appreciation.
Anyone has suggestions for location to get multi-residential property in bay area? I have been
thinking san jose/sunnyvale. I have also looked at slighly far away Stockton but
the neighborhood seems to be dicy. SF is a possibility but i need to study rent control.
I am in a similar situation and if you want to “Cash Flow” on your properties you really need to focus more on places like Stockton where you can get properties for well under $100K. Around the bay the prices are still way to high to get any cash flow…That’s assuming you use a formula like Rents/2-mortgage=cash flow. These areas are not as pretty but they have better cash flow potential.
I also think the best place to start is with the single family homes. If you look online you will see a ton more selection on SFH than on multi-residential properties. In addition the SFH will probably cost you less (less risk potential) and be easier to rent and sell down the road. That’s my two cents - good luck.