Property Type

[Joe Monaghan]

Hi all,

I've been watching this site for quite some time but only recently registered, so I can say I'm pretty new here. I am planning on buying my first investment property later this year, it will likely be a rental property unless the unlikely event of finding some outrageous deal that I can flip and make a nice amount of cash occurs.

My goal is to create a nice passive income or so while also building my overall net worth. At this point in time I, I have the extra income to likely buy 1 new investment property each year but that could change to about 2 per year once student loans and personal mortgage are paid off, I'm making VERY VERY aggressive payments on both because I'd rather not worry about the payments and I'd like to have the extra disposable income to make more money with (I know that I could use the money for investing but I am not a fan of personal debt, so this is the decision I made).

I would like to get your opinion on the TYPE of property to purchase with the intention of renting. I've been keeping my eye open so that when I am ready to purchase something in a few months I am better educated on what is a 'good deal', so I've looked at single family homes, town homes, and multi family homes (mostly duplexes with a few 3 or 4 unit properties mixed in). Although I have the intention of buying and holding the property there will inevitably be a time that comes when I want to sell the property, I am working to build my net worth, after all. How easy is it to sell a multifamily property? I'd imagine MUCH more difficult than a single family or town home, right?

Thanks for the help!

[Michael Seeker]

Hey @Joe Monaghan - welcome to BP, you're sure to find just about any RE investing info you can hope for on here.

As for your investment strategy, I'm a big fan of multifamily properties and depending on the area you may actually be able to sell a 2-4 unit property more quickly than a single family. As long as you don't go above 4 units, you'll be able to attract owner occupants. This definitely depends on the quality of the building and location, but I wouldn't dismiss 2-4 unit properties with the notion that they're harder to sell.