Single family homes or multi properties for newbee

[Kou Y.]

Should I start out with single family homes or 2 to 4 multi unit in the Columbus Ohio area ? I am not set in Columbus but would like to invest in Ohio due to the nature of my business. Possibly may choose between Cincinnati, Cleveland, Columbus, or Toledo region. Which would be a better area ?

Currently, I live in Durham, NC and looking to move to Columbus, OH area to invest in real estate rental properties. I believe that the current market values of homes in the Durham/Raleigh and North Carolina in general is too high. Most of the properties jumped $100k in value in the last 3 years so I am not going to buy in my area. It was unfortunate that i was not in a position to buy any real estate due to negative marks on my Credit Report and score. Now, my score is all cleaned up and in the 700's range. I am willing to relocate to invest in real estate. I can provide 10 to 20% down payments.

My main goals is to eventually own 10 free and clear rental properties that will provide cash flows to allow me to work less and eventually retire early from my day job. I am looking for long term investments and do not plan to flip.

I have been researching in the pros and cons of cheap properties in not so good neighborhoods vs higher end properties in decent neighborhoods with decent schools. In the end, I concluded that cheap properties will remain cheap while the good properties will raise in value and provide a better return in the long run with both cash flow, and equity.

There will be a trade off in the small multi units vs. Single unit homes. On paper, numbers looks great with multi units properties.  Most of the decently priced 2 to 4 plex units are in bad neighborhoods. Looking to spend $80k to $120k on single unit or multi-unit home. Obviously, the multi unit properties will bring in more cash flow monthly if everything works out. I am afraid these units will attrack lower end renters that are higher risks of non payment, damage to property, etc... 

So, in the Columbus, OH area, which is better to invest in and why ? Single family homes in decent neighborhood or multi units in less than desirable areas ?

[James Wise]

Originally posted by @Kou Y.:

Should I start out with single family homes or 2 to 4 multi unit in the Columbus Ohio area ? I am not set in Columbus but would like to invest in Ohio due to the nature of my business. Possibly may choose between Cincinnati, Cleveland, Columbus, or Toledo region. Which would be a better area ?

Currently, I live in Durham, NC and looking to move to Columbus, OH area to invest in real estate rental properties. I believe that the current market values of homes in the Durham/Raleigh and North Carolina in general is too high. Most of the properties jumped $100k in value in the last 3 years so I am not going to buy in my area. It was unfortunate that i was not in a position to buy any real estate due to negative marks on my Credit Report and score. Now, my score is all cleaned up and in the 700's range. I am willing to relocate to invest in real estate. I can provide 10 to 20% down payments.

My main goals is to eventually own 10 free and clear rental properties that will provide cash flows to allow me to work less and eventually retire early from my day job. I am looking for long term investments and do not plan to flip.

I have been researching in the pros and cons of cheap properties in not so good neighborhoods vs higher end properties in decent neighborhoods with decent schools. In the end, I concluded that cheap properties will remain cheap while the good properties will raise in value and provide a better return in the long run with both cash flow, and equity.

There will be a trade off in the small multi units vs. Single unit homes. On paper, numbers looks great with multi units properties.  Most of the decently priced 2 to 4 plex units are in bad neighborhoods. Looking to spend $80k to $120k on single unit or multi-unit home. Obviously, the multi unit properties will bring in more cash flow monthly if everything works out. I am afraid these units will attrack lower end renters that are higher risks of non payment, damage to property, etc... 

So, in the Columbus, OH area, which is better to invest in and why ? Single family homes in decent neighborhood or multi units in less than desirable areas ?

 I think 2-4 unit properties are the best properties one can buy when starting out. Nothing beats the 30 year fixed rate loan. Issue is you only get 10 of those suckers so I think you do best buying 2-4 units so that you can maximize the amount of rental units you can buy using those 10 mortgages. I prefer to have 30-40 rental units over 10.