Full Time RN Seeking Advice on Duplex vs. SFH as 1st investment

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Full Time RN Seeking Advice on Duplex vs. SFH as 1st investment

Yaniel SuarezPro Member
Member since 2021 · 10 posts · 8 votes
Hello BP community. I'm a 27 year old full-time RN (working on average 91 hours/week) with 100k in savings looking to dump into my first real estate investment. I'm looking to put 25% down on either a turn-key SFH or Duplex in the South Florida market (Hollywood or Miami). Which property type was your first and what would you recommend? I know that multifamily has the potential to provide more cashflow but the stability of long-term tenants with single family homes is very appealing since it seems more hands-off. Is a property management company essential for multifamily or just a convenience? Also, do you guys use apps such as cashapp or venmo to collect rent? Just curious. Thank you for taking the time to read this and happy 2022!
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Malgorzata SadowskaPro Member
Real Estate Agent · Miami, FL · Member since 2017 · 506 posts · 205 votes
4y

@Yaniel Suarez PM would be a convenience (with the amount of work you are doing, might be a much needed convenience :) 

Is this your first RE purchase EVER (and you want to house hack?) OR purely an investment?

I (and my landlord clients) have used all kinds of apps to collect rent. 

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  • Raymond J. RodriguesBusiness Member
    Lender · Miami, FL · Member since 2017 · 1k+ posts · 797 votes
    4y

    @Yaniel Suarez, @Malgorzata Sadowska is an expert in the South Florida area. I would reach out to her. She’s a wealth of knowledge. 

    [email protected]619-456-8311
    Helm Mortgage Corp.5127 Reviews
    WebsiteView Page
    2Reply
  • Malgorzata SadowskaPro Member
    Real Estate Agent · Miami, FL · Member since 2017 · 506 posts · 205 votes
    4y

    @Yaniel Suarez PM would be a convenience (with the amount of work you are doing, might be a much needed convenience :) 

    Is this your first RE purchase EVER (and you want to house hack?) OR purely an investment?

    I (and my landlord clients) have used all kinds of apps to collect rent. 

    2Reply
  • Roberto Aguilar-Cancino
    Investor · West Palm Beach, FL · Member since 2019 · 10 posts · 6 votes
    4y
    Hi Yaniel, in my experience there isn’t a big difference between SFH and duplex. It really depends on the property. Some SFH will cash flow more than a duplex but they’re riskier since it’s just one tenant. On the other side, duplex provide 2 cash flows but you have to manage 2 contracts. The key is to find a solid tenant to avoid issues down the road. In your situation you definitely need a PM. 
    I buy, rehab, rent and manage (then refi) my own properties. Shoot me a message if I can be of help. I’m based in West Palm.
    Good luck.  
    1Reply
  • Cory LucasPro Member
    Rental Property Investor · Brighton, IL · Member since 2019 · 431 posts · 139 votes
    4y

    @Yaniel Suarez nice to meet you, fellow RN investor here up in Illinois. Happy to help how I can. 

    Me personally if I was you I'd say get a duplex, live in one side and rent out the other may be the easiest given your situation and you could possibly avoid the Property Manager. PM's are nice if you find a good one, but not completely necessary, usually the most headaches with a tenant come within the first few months and once you get any issues ironed out it is usually smooth sailing in my opinion/experience. I haven't used a PM to this point other than to place tenants as I don't' have the time to do all of that mess myself (showing the property, obtaining the lease, sifting through applications, etc.) It's a time consumer that I'm happy to part with 80% of the 1st month's rent, but after that as long as you place a good tenant your phone calls/issues are usually incredibly minimal, I hardly ever hear from my tenants, so I don't see the need to give up 10% of my monthly rent to a company for them to not hear from my tenants either. That said if you're looking at it purely as investment and not looking to house hack/live there then I'd go SFH myself versus duplex to minimize your issues. Again happy to help if I can, feel free to reach and I hope I was helpful

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  • Yaniel SuarezPro Member
    OP
    Member since 2021 · 10 posts · 8 votes
    4y
    Quote from @Malgorzata Sadowska:

    @Yaniel Suarez PM would be a convenience (with the amount of work you are doing, might be a much needed convenience :) 

    Is this your first RE purchase EVER (and you want to house hack?) OR purely an investment?

    I (and my landlord clients) have used all kinds of apps to collect rent. 

    @Malgorzata Sadowska This would be purely an investment and it's my first RE purchase ever, not house hack. Since I have the opportunity to live with my mom I'd rather just have more equity in the property by putting 25% down as well as more cash flow. I'd love to start working with agents as soon as I can. I'm still not pre-approved for a loan since I don't have 2 years of tax returns working as a RN but I'll keep your name at the top of my list. I know you need those requirements to take me as a serious client : ) I'm leaning more toward purchasing a duplex rather than SFH.

    1Reply
  • Michael H.
    Investor · Kennesaw, GA · Member since 2018 · 98 posts · 127 votes
    4y

    I've owned SFH, multi-family, and townhomes. I currently own and manage 8 doors mixed multi-family / townhomes. IMO multi-family has the best cash flow, but townhomes have been much less work due to the HOA taking care of a lot (or some) of the maintenance.

    I personally have been using TenantCloud for a little over a year and it's been pretty great. I was using Cozy before that. I would recommend you get some management platform that's either free or low cost that has an app that allows tenants to pay via the app. Making it easy for tenants to pay, is always a good thing.

    2Reply
  • Raymond J. RodriguesBusiness Member
    Lender · Miami, FL · Member since 2017 · 1k+ posts · 797 votes
    4y

    @Yaniel Suarez, two years of tax returns is not required in order to purchase an investment property under certain circumstances. Are you a recent nursing graduate? 

    [email protected]619-456-8311
    Helm Mortgage Corp.5127 Reviews
    WebsiteView Page
    0Reply
  • Yaniel SuarezPro Member
    OP
    Member since 2021 · 10 posts · 8 votes
    4y
    Quote from @Michael H.:

    I've owned SFH, multi-family, and townhomes. I currently own and manage 8 doors mixed multi-family / townhomes. IMO multi-family has the best cash flow, but townhomes have been much less work due to the HOA taking care of a lot (or some) of the maintenance.

    I personally have been using TenantCloud for a little over a year and it's been pretty great. I was using Cozy before that. I would recommend you get some management platform that's either free or low cost that has an app that allows tenants to pay via the app. Making it easy for tenants to pay, is always a good thing.

    @Michael H. Thank you for the advice and I'll definitely check those two property management software out. Managing 8 doors yourself without a PM company is very impressive. I think I'd lose my mind with the constant phone calls and rent collection while working as a nurse. 

    0Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    4y

    To qualify for a mortgage you typically need to prove a consistent 2-year work history. You won't need tax returns unless you are self-employed or already have rentals. College counts as part of your 2-year history.

    Regarding hiring a PMC, if this is your first property period and you are working that many hours, I'd comment that you have two options:

    1) Hire a PMC

    2) Buy a duplex and live in one side, so you can be more hands-on and available.

    Otherwise, I don't see this going well for you.

    [email protected]248-209-6824
    Logical Property Management4.9458 Reviews
    WebsiteView Page
    0Reply
  • Joshua Noth
    Real Estate Agent · Austin, TX · Member since 2020 · 338 posts · 296 votes
    4y

    @Yaniel Suarez I'm no expert in the South Florida market, but generally speaking, both offer their own benefits. MFH's big edge over SFH is their economies of scale. They just may require more "work" in terms of PM, repairs, etc., but that's not always the case either. I typically recommend MFH *if it is an option*. Some investors cannot afford the higher required down payment, or the extra PM rates, and so on. At the end of the day, the most important step is actually getting a property (and making sure it's a good deal, of course!)

    In terms of getting a PM, it is not essential, but is very helpful.  If you are investing locally, you can certainly do it yourself, but it can become a decent amount of work, especially upfront.  Finding tenants, replacing their appliances, fixing the stuff they break when they move in, all those fun things.  

    2Reply
  • Adam Schooley
    Real Estate Agent · Fort Lauderdale, FL · Member since 2015 · 175 posts · 79 votes
    4y

    @Yaniel Suarez I'd love to have a conversation about buying an investment propery here in South Florida. Your story hits home with me because my wife is a full time nurse of nine years and is currently at Cleveland Clinic. My daughter just graduated from NSU with her BSN is a nurse at Holy Cross now.  My wife and I have owned both types of properties that you're interested in right here in South Florida.  I would definitely like to speak to you about the pros and cons of buying either one.   

    2Reply
  • Brian Mineau
    Flipper/Rehabber · Columbus, OH (columbus oh) · Member since 2020 · 23 posts · 38 votes
    4y

    @Yaniel Suarez

    I would encourage you to go for the duplex or even a quad.

    My property management company uses cash app and Venmo as well as always the tenants to do direct deposit into our account.

    Are you solely set on investing in Florida?

    1Reply
  • Yaniel SuarezPro Member
    OP
    Member since 2021 · 10 posts · 8 votes
    4y

    @Drew Sygit Thank you for the solid, actionable advice and warning. I'm leaning more toward just putting 25% down on a duplex and hiring a PMC. I need the property to cash flow from day one. 

    0Reply
  • Yaniel SuarezPro Member
    OP
    Member since 2021 · 10 posts · 8 votes
    4y
    Quote from @Joshua Noth:

    @Yaniel Suarez I'm no expert in the South Florida market, but generally speaking, both offer their own benefits. MFH's big edge over SFH is their economies of scale. They just may require more "work" in terms of PM, repairs, etc., but that's not always the case either. I typically recommend MFH *if it is an option*. Some investors cannot afford the higher required down payment, or the extra PM rates, and so on. At the end of the day, the most important step is actually getting a property (and making sure it's a good deal, of course!)

    In terms of getting a PM, it is not essential, but is very helpful.  If you are investing locally, you can certainly do it yourself, but it can become a decent amount of work, especially upfront.  Finding tenants, replacing their appliances, fixing the stuff they break when they move in, all those fun things.  

    @Joshua Noth Thank you for the great advice. MFH is what I'm leaning toward at this point since I have the opportunity to save while living with my mom. The higher down-payment and PM expenses shouldn't be an issue with the amount of over-time I'm working. How rare is it to find a MFH that will cash flow from day one after closing? I'll be putting 25% down using a conventional bank loan.

    1Reply
  • Joshua Noth
    Real Estate Agent · Austin, TX · Member since 2020 · 338 posts · 296 votes
    4y

    @Yaniel Suarez love the strategy! Unfortunately, I'm not particularly familiar with the ins and outs of your market. Typically, you are at least more favorable for cash flow out of the gate with a MFH as opposed to a SFH, but I couldn't confirm the likelihood of positive cash flow. I would definitely get in touch with a local agent and pick their brain on that stuff, they'll have more tangible insights.

    0Reply
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