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Updated over 10 years ago on . Most recent reply

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Cory Mickler
  • Youngstown, OH
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Which is better to start investing with? A multi family home or an apartment complex?

Cory Mickler
  • Youngstown, OH
Posted

In my opinion an apartment is easier to maintain and has higher profit margins but is also more of a risk while a multi-property home such as a duplex requires more work to maintain for less profit. but if you live in one unit and rent the other unit out you can make a slight profit without much effort.

Also, your more guaranteed to have renters when you have 12 units available as opposed to 2 units since you have more space available so even if some one leaves it doesn't put as much of a dent in your income.

I am new to real estate so any input is greatly appreciated!

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Joel Owens
  • Real Estate Broker
  • Canton, GA
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Joel Owens
  • Real Estate Broker
  • Canton, GA
ModeratorReplied

If you can afford it and you will live in one unit get a quad instead.

Your breakeven occupancy will be better. In a duplex if the tenant leaves or is evicted you are carrying the note. If one tenant leaves in a quad you still have two other tenants besides you paying the note.

Those with limited cash it is good to start off small.

If you have substantial funds but not enough experience you can buy larger properties with proper structure that run themselves for the most part. Generally 75 units and up.

If you are looking at 20,30 units etc. then you have to be more hands on as you don't have the scale yet and would benefit from owning smaller stuff first before making the jump.

Another option is partnering with others to buy a larger property with the scale that works.

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