Big Decision to Buy or Not

[D Turner]

I need your help.

My ocean front (long Beach, ca.) next door neighbor offered to sell me his townhouse last night. Offered price 700k, appraised 800k. Which means I will have 100k+ profit immediate. Sounds great, but I have a small problem. Our family goal was to graduate from single house purchases to moderate size multifamily purchases.

We are paying cash, possible rent 2800-3000 per month. Currently our money is held in a very low interest savings account.

Fyi, we have plenty of savings and emergency funds.

Should we use our cash to purchase multifamily projects? Or should we set-aside our family goal and make the immediate rent or flip money or stick to the goal? What makes better since?

Thank you for your help.

[Spencer Gray]

What is your "why" related to buying a Multifamily property? 

If it is cashflow and a hedge against inflation and recessions then buying a townhome probably won't satisfy your goals.

If you're just trying to make money or invest in real estate in general then the townhome might not be a bad idea. You could flip it and put the extra $100K towards buying a multifamily property but I see that as a diversion of your goal.

If you have specific criteria and a plan I would stick to it and not get distracted.