MULTIFAMILY OR STR SINGLE FAMILY ? AS A FIRST INVESTMENT IN FL.

[Adelle Swan]

Hi all on BP!  Some advise is greatly valued please.  Anyone who has experience and who can offer sound investment advise.  I have access to a great lender and now the only thing is to buy the property.  The RIGHT one of course.  

I am looking at either a single family home to do STR (for max. income and cashflow) or a Multifamily LTR (triplex and up to even 12plex etc. ) In all circumstances the deal must work and everyone needs to get paid each month at the end of the day of course.

But what would you recommend is a better deal to start with to ensure I start of strong and well ? (all properties we look at will pass the BP deal analysis and check all the boxes for positive cash flow , COC , ROI, 50% rule etc.)

A) A SF doing a STR ? (to hold and is a start to our property portfolio.  A friend is doing this near my area and is making roughly $8-10K p/m on each of his 3 properties recently bought & rehabbed to high end finishes).     

B) A SF , Rehab and Flip? (to make a profit and gain more cashflow) and then do another. 

C) Multifamily of any kind, Rehab and LTR ? (to hold and again is a start to our property portfolio and for long term appreciation) . Here I will make a $350 COC return each month for example on a deal my son and I currently ran on the deal analysis. I am not too phased making money on this property now, as long as rest assured I know the lender and the down payment pvt. lender and all the holding costs etc gets paid each month for the length and longevity of this deal. Later on in 5 or so years I can sell the property or I can retain it, settle everyone or instead draw equity out of the property later on and find another great investment.

Thank you so much for this great Forum and in advance for your input!  Happy Investing ! 

God Bless ,  Adelle

[Patrick Drury]

@Adelle Swan
Stay away from the rehab and flip if this is your first deal unless you're a contractor and have a few crews that can breeze through it at a really good price. If this is your first deal might be worth going with option C and building systems to manage properties that are LTR's then down the road get an STR which is more management intensive. You can use the systems you built to manage properties via LTR to help you with STR's vs jumping in head first and never having managed a property. You could also just have a manager for the STR and you wouldn't have to make those systems, but if you are local, you might want to manage it yourself.