Need Advice In My Direction - Multi Family Or Single Families (I Currently Own 6)
Hello Everyone.
I will give you a bit of background, I currently own and run 6 single family homes (around $200k each). I am in a unique market where I cash flow $500 a house per month.
Those rentals are going fine, don’t take much of my time and are easy to fill.
Currently I have been looking in to multi family apartments. There are some 10 unit buildings in my area going for around $600k and would seem to cash flow at least $1000 - $1500 a month. I might have to bring in a partner for the multi family, not sure yet. I am also worry about the headache a10 unit place brings compared to a single family home
I guess my main question here is what do you guys think is a better direction for long term. I am interested in building equity and having a fairly good cash flow.
Please let me know your thoughts.
Thanks so much,
Darryl
Building Wealth One House at a Time: Making It Big on Little Deals [AUDIOBOOK] (Audio CD)
by John W. Shaub (Author)
My experience is that I can live the life I want and enjoy my life when I own SFH. I can manage, I can enjoy my work. Owning apartments is much more complicated in that I have to interact with and solve so many more problems. Selling becomes more complicated, too!
How motivated are you to sell?
I have had a condo on the market for a while, and have now thought about renting it.
It would run ~500/mon negative. However, we may be moved into a better school district which would allow me to bump the rent.
How long will it take for the market to come back and soar?
Whoops--forgot to add that we are not all that motivated to sell. We have a property manager ready to take over as soon as we tell him to and can carry the house empty until December.
Of course, after that, we may have to move into it! ;->
Your "out 300 a month" includes taxes and insurance?
You can always counter. I have never had anyone get mad at me for countering. They expect it.
My other thought is that adding granite coutner tops and whatever was your other upgrade will do nothing to help sell the house.
I want to know if he renewed the lease???? lol
I needed a laugh today... that thing is dang funny
I have never gotten HUD to pay any extra. I have had several and all were good until they are ready to move then the trouble starts. Also if you do hold some or all of the deposit make sure you do it by the book. They know the system well and you will have to defend your self. If you find a way let me know I have several judgements that need to be paid off.
J
Six Unit House? Is the house zoned multi unit or for a boarding house or he just illegalling renting out rooms? Does each unit have their own kitchen, bath? You need to check with the city to verify that this is a legal setup.
Does each unit have their own water and electric meter? If not, how is the water and electric subdivided among the tenants?
Is there ample parking for all six units?
How could it be built as a six-unit house? Would this not be an apartment building?
Here, (TN) anything above 3 units is considered multi-family and different codes apply. Such as fire-walls between units, handi-cap accessability, and probably more. Also, the property taxes and insurance are rated different.
watchbillw:
Time to fire up 3-mile Island.
As for this deal, to me it sounds very exciting.
Why did he get away w/ the space heaters?
Could be grand fathered
no one complained
Get a good GC or inspector to walk thru the place, although the financial seem like a no-brainer.
Visit you friendly building and planning departments.