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Updated almost 5 years ago,
Buying multifamily new or used?
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.