1 SFH vs MFH

[George Lods]

Hi everyone and thanks for reading. I've been doing my research by reading and listening to BP podcasts. I thought my plan to invest would be one SFH every 6 months with a budget of 30k (not 30k house price but 30k for closing rehab'ing etc..) to get into each home. But a few wks ago I listened to a BP podcast where a guy mentioned that he invested 100k into a 250'ish unit MFH. His 100k yielded him a 5% stake of the rents and equity in the property. Without going in to all the minor details my question is this. Would you plug away at 1 SFH at a time and at the 2 yr mark have 4 SFH's or would you jst save the 100k over 20 months, get in with the right team and invest in a large MFH? Obviously its a bigger game going into a 250 unit deal but it seems like per door the deal or return can be way better. Any thoughts before I start squirreling away 100k?

[Patrick Liska]

George,

Its all in the numbers, how many partners in the 250 unit place ? whats the return on the 250 unit place / # partners vs the return on the 4 SFH? If the assets appreciate, how much of that appreciation will you see divided by the # of partners vs your 4 SFH'S ? #'s you would have to run in order to find out which is more profitable for you, now and in the long run.