Single-family from afar or multi-family in-state?

[David C Heiling]

Hello, all! 

I'm a first-time real estate investor! Hoping to make some connections here. After watching my dad and uncle flip houses growing up, it's time for me to step up to the plate. I have about $75k in the bank. I make around $160k a year at my current job, but I dislike it. 

I currently live in Charlotte, NC. I've been using BiggerPockets' resources for a few months and I've found a property in Maine ($260k) that my wife and I love. The goal would be to use it as a short-term rental because of its location near the coast. I've run comps every which way to Sunday, and even with cutting in a property management company for 25% to run it from afar, considering the renovations and furnishing costs, we'd still be able to make a positive annual net yield and c-o-c at about 57% occupancy. 

That's the option we get excited about. There are some upfront costs, but nothing nuts. My head, however, thinks we should probably just look for a multi-family unit here in Charlotte, put the 5% down, live on one side, and rent the other, but it just doesn't hit the same. There are a few near Madison Park and another few in Elizabeth we could choose from. We could get some steady income, but there isn't much supply for multi-families in Charlotte at the moment.

For STRs, I have also looked extensively at Madison, WI (my hometown) and the Ozarks (wife's home state) as other potential opportunities for us. I would love to hear any opinions, advice, or suggestions about STRs vs. multi-family home hacking as a first-time investor. Thanks so much for reading, and have a great day!

[Grace Walser]

Hi David! 

Congrats on embarking on your first real estate investment! It seems like both options are great opportunities and will really depend on your goals and lifestyle. I invest out of state and also here in Charlotte and I will say having a property manager for my properties out of state really gives a hands off approach which is great if you do not have as much time with your work. 

I am also a real estate agent and can confirm multi-family properties are hard to come by. However, there are a few opportunities currently in Charlotte and if you can take advantage it's a great way to get started with low entry! 

Have you considered purchasing a duplex first since you will only have to put 5% down and then later in the year revisiting opportunities in Maine?

I'd love to connect with you more about opportunities I am seeing in Charlotte!