Would you rather buy a SFR, Duplex, Quad or 10+ unit....Why?

[James Wise]

Simple question. What do you prefer investing in & WHY?

• Single Family Houses
• Duplexes
• Quads
• Apartment buildings (10+ units)

[Michael Ealy]

Originally posted by @James Wise:

Simple question. What do you prefer investing in & WHY?

• Single Family Houses
• Duplexes
• Quads
• Apartment buildings (10+ units)

50+ unit apartment buildings. Why?

1. Economies of scale which leads to lower cost per unit for almost everything (maintenance & repairs, capex, property management, etc)
2. Little income improvements through more efficient management leads to HUGE increase in equity.
3. You have on-site management and maintenance since the property can afford it - so it becomes more passive (notice I didn't say totally passive because it's not)

Now they are harder to sell - but that also makes them easier to buy specially when you have a motivated seller on the other end. You can do more creative acquisiton techniques (seller carry back financing, deferred maintenance credits, etc) which lead to no money-down opportunities.