Beginning Tips & Advice

[Patrik Fougere]

I'm new to real estate investing and ideally, I wanted to start investing in Multi-family units with the intention to generate cash flow. In my location multi-family units are a lot more expensive then I'm really looking to invest. What are some pro's and con's in investing in the multi-family units over the single-family home? With the goal being to generate cash-flow. Buying and flipping may be an option in the future.  

[Akil Kariym-Bey]

@Patrik Fougere awesome goal Patrik and I wish you the best in your journey!You sure found a perfect resource to help you get there: BIGGER POCKETS! Looking to generate cash flow especially as a beginner, is pretty much what the BRRRR strategy was made for. You can look at many of "BeardyBrandons" posts on IG and find that this was how he started his career in Real Estate also.

There are many pro’s to this method. To name a few off the bat it’s a sub strategy of a larger concept known as the “Buy and Hold.” The basic premise being that you purchase a property, generally with a fast money short term loan for one price. Then you force appreciation or the value of that property to go up by making “ capital improvements” and or using different strategies to increase the value: sub- metering water lines, equipping units with washer and dryer appliances, adding a pool or event hall for rent, etc.

As for the Con’s it’s a really great, down the middle type of start off so I can’t think of many but I know that legendary Grant Cordone complained about not starting bigger sooner. I guess he would say that starting with a small apartment complex would be better? 🤷🏿‍♂️🤷🏿‍♂️ However, run YOUR own race! Starting out with a single family home is how about %75 of people start out in this game, don’t quote me on that one though. 😂

I wish you continued success, again leverage this Bigger Pockets resource as much as possible so you can get as much out of it as you can.