Single or multifamily starting out

[Marcus Trujillo]

Ok guys I am brand new to bigger pockets and am really excited for the future of investing. I am currently saving for my first property and am saving $1500-$2000 a month to get the first down payment. I drive semi and am looking at outsourcing the management of the properties to a property management company. I live in Albuquerque, New Mexico and am looking at investing out of state in higher cash flowing areas( Kansas City, Tulsa, Lubbock, Midwest pretty much) My biggest dilemma is whether or not I should just keep saving money for about a year or so and get into a 2-4 unit property with about $20k-$30k down or should I start with a single family residence that cost around $50k with only $12500 down? The problem I have with single family residences is I feel like the cashflow is minimal and that it is a lot more risky because you only have one tenant to cover the mortgage and expenses, so if it goes vacant it's all on you. Any insight and advice would be much appreciated, as I want to make a plan of action so I can stick to it and make it happen! Thank you in advance

[Steve Gregory]

Welcome Marcus, I live and invest in Tulsa. I've purchased 6 single's this year. My model is to buy for cash for under 30K, make minimal repairs if any, and sell on a lease option for between 50 to 60K, and carry the note for the life of the term. Currently, my terms range from 5 to 15 years. My "option deposits" from tenant buyers have ranged from 3 to 10K. My cash on cash ROI is consistently in the mid 20's. If you would like to hear more about my investment model, PM me and I'd be happy to share more details with you. I would be open to a JV arrangement with me managing the asset.

Keep on Trucking'