Investing in Real Estate House vs Apartment

[Zach Lehman]

I am currently a college student graduating in Spring 2020 and just want to get a head start. I would love advice from experienced personnel in this topic. I am currently really considering in investing in real estate and I originally believed it was just through single family homes but I recently found out that buying apartment complexes or even industrial buildings can also be an option. I want to find out what may be the best option as a starter in this field. Any detail within this topic is greatly appreciated. I love hearing about experiences from others to help with future success.

Thank you,

Zach Lehman

[Ben Kappel]

Sounds like you have the right mindset already on getting a future plan in place. The answer may really depend on what your goals will be and how you want to achieve them. If you are planning on househacking which is how many start, you could get into a multi-family like a 4-plex for a low down-payment(3.5%). For me I like SFH because you are only dealing with one tenant and they tend to be a longer term tenant that takes care of the place better. Maybe this looks better if your planning on self managing the property like I do? If your not planning on househacking know that it might be less capital to invest in a single family( requires 20% down) than a multi-family(requires 25% down and tend to be more expensive).

I would try looking at a few different places on what you could potential afford in the future and see what offers the best returns(ROI) in your location. Never too early to start analyzing deals.