Avoid single family as a new investor?

[JR Rivas]

Hey all! I’m a relatively new investor & I was talking to some buddies and they basically told me to avoid single family like the plague because if one person leaves you’re at 100% vacancy. What do you guys think? I’ve also hear grant cardone say this & also say don’t shop for real estate based on your budget. I have about 30k i’m comfortable investing eith right now. My area is relatively cheap so I can buy a single family for 45k. 20% down and rent it for $700-$800. Any suggestions would be great.

[Anthony Gayden]

Originally posted by @JR Rivas:

Hey all!

I’m a relatively new investor & I was talking to some buddies and they basically told me to avoid single family like the plague because if one person leaves you’re at 100% vacancy.

What do you guys think?

I’ve also hear grant cardone say this & also say don’t shop for real estate based on your budget.

I have about 30k i’m comfortable investing eith right now.

My area is relatively cheap so I can buy a single family for 45k. 20% down and rent it for $700-$800.

Any suggestions would be great.

 Keep in mind the target audience for Grant Cardone. Accredited investors with at least $100,000 to invest. I agree with his advice if you fall into that category. I also agree with him in that owning one door is a bad idea. 

Grant does not know or understand single family investing. He also doesn’t know or understand flipping, wholesaling, note investing, or even other commercial real estate investing. Keeping that in mind and the fact he is trying to sell his own product, he gives misleading advice to sway people away from the other investments.

I like single family. I think the barriers to entry are lower and it allows people who don’t own their own profitable businesses or have high paying jobs the opportunity to invest in real estate. I think owning a single door is a bad idea though and the only way investing in single family can work well is if you own enough units.