Duplex or Triplex Investing

[Connor Woods]

So I am currently looking for advice about multi-family units, Do you think it would be a better option to use an FHA loan first, and buy a newer building that is less work or use go for a good one that neads some improvements!

[Ron Flatt]

You pose a great question and that depends on the investor.  Which is probably what you did not want to hear. 

First:  If you are going to live in it for a house hack, then you will need a better building.  It will give you some experience in landlording, getting a cheaper mortgage for yourself, etc. 

However:  If you are handy, can do the repairs yourself or get them done economically, then refinance at a later time.  You might be able to make more. 

The key is to not fall in love with the building, but fall in love with the deal. Whether you buy a ready to rent FHA approved Duplex or triplex, or a fixer upper, make sure that the deal works. Price in your repairs and make sure you have cash for the unexpected, (there will be unforeseen expenses). You will do great, do not rush, find your deal, then execute it.