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Updated about 9 years ago on . Most recent reply
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Should I buy a Single Multi-Family or a Condo/Apartment?
Hi I'm a first timer buyer/investor. Should I buy a Single Multi-Family or a Condo/Apartment for the 1st timer investor? I live close to a University. I'm looking for a Rental Income rather than buy-n-hold strategy?
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Hey Dan,
Like @Kyle Scofieldnoted, rental income and buy & holds are the same (i.e. cash flow). Student housing and cash flow go together like pb&J or Josh & Brandon.
That being said, take some time (anything less than 4-5 months of daily learning, reading, connecting, studying, networking or listening isn't long enough). I've been working for BiggerPockets for about 8 months now and am just NOW feeling comfortable (barely) to start investing. Not saying you can't or shouldn't just my personal recommendation.
I'm looking for the same as you and am leaning more towards SF.
1) I plan to live in it first for 2-3 years and just personally like the idea of a SF more than a condo. No real rhyme or reason, just a personal choice.
2) Rents for SF's tend to be higher than condos.
3) Don't have to deal with HOA's
4) Much more freedom with an SF. College kids want to listen to loud music, drink some beer on a porch, and have a good experience. (I'm sure someone will chime in with "you're asking for your home to be ruined" but I lived with 5 SDSU football players and not a thing went south).
5) If students DID cause damage, security deposit will cover just about everything.
6) Usually, Financial aid or parents pay for rent, which means you don't have to be worried about not getting your monthly paycheck ;).
7) Lastly, I plan to fix it up in those 2-3 years that will attract the slightly more responsible tenant.
Nonetheless, scope out the neighborhoods. If it's somewhere YOU would want to live, great. Run the numbers (most important)- if the numbers work, then go deeper into the deal.
Hope this helps you out a little bit! Good luck!
-Zach