I talked to my broker he told me 15% is his personal goal when investing. Assuming you put Down 25%, He says if I invest 25k, then x .15 = 3750 / year or 312.50 per month. What do you think of 15% is this to low to high? ROI first year?
This is all very market specific, @Guy Primo. Some investors do very well with SFR, I would never go down that route. With that in mind, the advantages of SFR are that usually the tenant pays for all the utilities, lawn care, snow removal and (often) will be more likely to handle small repairs themselves. SFRs also tend to command the highest rent, relative to size and number of bedrooms. Of course, they also tend to have the highest per-unit cost.
Once you go to a duplex, water/sewer, lawn care, snow removal and perhaps other house utilities are likely on the owner. Unlike larger MFR, you don't really get economies of scale. E.g. replacing the roof on a 4-unit doesn't cost 2X that of a duplex, but you have 2X more units over which to spread the expense. 4-unit properties usually don't cost 2X what a duplex does.
I think it depends on your strategy, @Guy Primo. If you're BRRRRing and the renovation takes 6 months, you may not hit that CoC ROI the 1st year, but crush it every year after. If you're investing in class-A properties in HCOL areas, you may never get close to that ROI.
As a general rule, I like to see $150-200/unit/month with CoC ROI in the mid teens or better.
@Jaysen Medhurst that’s another option I have been looking at, I’ve been looking at two family’s. But with the two family’s, yes no hoa fees but there are other expenses that come along with that.
This is all very market specific, @Guy Primo. Some investors do very well with SFR, I would never go down that route. With that in mind, the advantages of SFR are that usually the tenant pays for all the utilities, lawn care, snow removal and (often) will be more likely to handle small repairs themselves. SFRs also tend to command the highest rent, relative to size and number of bedrooms. Of course, they also tend to have the highest per-unit cost.
Once you go to a duplex, water/sewer, lawn care, snow removal and perhaps other house utilities are likely on the owner. Unlike larger MFR, you don't really get economies of scale. E.g. replacing the roof on a 4-unit doesn't cost 2X that of a duplex, but you have 2X more units over which to spread the expense. 4-unit properties usually don't cost 2X what a duplex does.