Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Starting Out
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 5 years ago,

User Stats

2
Posts
0
Votes
Leeann McGee
  • Rental Property Investor
  • Central California
0
Votes |
2
Posts

Buying multifamily new or used?

Leeann McGee
  • Rental Property Investor
  • Central California
Posted

Hi.  I'm new to the investing world and any advice from investors is appreciated.

I have an opportunity to 1031 exchange into a new multifamily unit, construction to begin summer 2020.  There will be no cash flow for a year.   

My questions are:  Is this something a new investor should delve into, new construction with no cash flow for a year?  

The pro forma on the fourplex suggests $600/month cash flow when it is fully leased in a year (or possibly longer).  Does this sound like a good return?

Would it be better to 1031 exchange into multiple turnkey single family homes that are already established and can cash flow within a month to two months?

I'm looking for multifamily, but I guess I'm unsure if new construction is the way to go.  It sounds like a good idea because there will be little to no maintenance for a while since everything will be new. (The new construction multifamily investment will max our 1031 monies.)  It just seems like putting "all my eggs in one basket" and waiting a year to earn cash flow will delay my investment opportunities and journey.  

Thank you for your advice.

Loading replies...