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Updated about 6 years ago,
BRRR, single family, or multifamily analysis
Hey bp forums, first time posting on here and I need some advice. I have four different options to use as my first real estate investment.
1. I have a duplex I can get for 200,000 with a 400 cash flow/month(after living in one side for a year using a FHA loan. When I live in it I would have a roommate to break even with costs
2. Remodeled single family home that go for 120-140 that rent 1,100/month and cash flow 300ish/month after house hacking for a year using my va loan.
3. I can put 10k down(20%) on a single family home and put 25k into fixing it up and have an ARV of 85,000 and rent it out with 270 cash flow/month.
4. I can purchase a smaller “shotgun” style house for 85k 20% down and cash flow 250/month and not have the hassle of flipping it.
All four are in a different neighborhood going from best to worst as I listed them. There are a ton others for sale like the third option where I can put 10k down and have an ARV of 85k so I was leaning towards rinse and repeating those houses until I have enough for 20% down on the first option duplex. I helped my friend flip a house this summer and got hooked on it so I know what it takes to renovate a house and am looking for the smartest way to build a portfolio of 5 houses by the end of 2020. I'm located in New Mexico if that helps at all. My question is which option looks like the smartest option for a newbie and why?