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Updated over 6 years ago, 08/29/2018

User Stats

20
Posts
5
Votes
Gursewak Singh
  • Realtor
  • Frisco, TX
5
Votes |
20
Posts

Single Family or Multi-Family?..Calling all the guru's

Gursewak Singh
  • Realtor
  • Frisco, TX
Posted

Hello guys,

  I was talking to few investors in my Area basically told me to stay away from SF? They are advising me to get into Duplex, triplex or 4plex. I do have enough money saved to comfortably put 20% down. I live in Dallas/Fort worth Area. Can anyone of you guys point me into right direction?

Another thing, I get worry about really old(1960-1970's) Multi-family, start thinking I may have to keep putting money into it? Is this true?( I do understand I may need to rehab it.) 

 If anyone is in Dallas area, I would love to grab a lunch/Coffee & do some networking.  

Thanks Guys...BP rocks.

User Stats

4,814
Posts
3,393
Votes
Jordan Moorhead
Agent
  • Real Estate Agent
  • Austin, TX
3,393
Votes |
4,814
Posts
Jordan Moorhead
Agent
  • Real Estate Agent
  • Austin, TX
Replied
@Gursewak Singh do you alr aye own a house? I would buy a multi, 60’s and 70’s aren’t that old. We have 1880’s builds here in Minneapolis!

User Stats

20
Posts
5
Votes
Gursewak Singh
  • Realtor
  • Frisco, TX
5
Votes |
20
Posts
Gursewak Singh
  • Realtor
  • Frisco, TX
Replied
Originally posted by @Jordan Moorhead:
@Gursewak Singh do you alr aye own a house? I would buy a multi, 60’s and 70’s aren’t that old.

We have 1880’s builds here in Minneapolis!

 @ Jordan Moorehead I am not sure, what do you mean alr aye own a house? I appreciate advice  to buy Multi..

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User Stats

18
Posts
11
Votes
Jerimy Justice
  • Flipper/Rehabber
  • Lakeland FL
11
Votes |
18
Posts
Jerimy Justice
  • Flipper/Rehabber
  • Lakeland FL
Replied

The age of the home shouldn't be a deterrent because its still not very old. I'd make sure you are getting a good deal on it and that should help you with the updates. I would have a contractor walk around the property though to make sure that the bones are good and you don't have any unexpected expenses. Good luck my friend!

User Stats

6,603
Posts
6,945
Votes
Bjorn Ahlblad
Pro Member
#5 Multi-Family and Apartment Investing Contributor
  • Investor
  • Shelton, WA
6,945
Votes |
6,603
Posts
Bjorn Ahlblad
Pro Member
#5 Multi-Family and Apartment Investing Contributor
  • Investor
  • Shelton, WA
Replied

Gursewak you can make money and lose money either way-singles or multi's, old and new. All have their fans and detractors. Singles are usually easier to sell and you have no tenant to tenant conflict and newer should be easier to maintain all things being equal; but they never are. Multi's offer economies of scale; but it is far more important that you master the fundamentals of investing and set your goals and objectives. It is easier to start with SFR and duplex and make up your own mind as to your preferances. There is no right or wrong with singles or multi's; but there is definitely a right and wrong with how to make money. All the best!

User Stats

4,814
Posts
3,393
Votes
Jordan Moorhead
Agent
  • Real Estate Agent
  • Austin, TX
3,393
Votes |
4,814
Posts
Jordan Moorhead
Agent
  • Real Estate Agent
  • Austin, TX
Replied
@Gursewak Singh sorry... own a house!

User Stats

13,926
Posts
12,725
Votes
Replied

Multi unit investing is a cash flow play where as SFH investing is primarily an appreciation investment. Value of SFH properties is driven by home buyers where as multi units are generally driven by rental rates and investor markets. They may both appreciate but SFHs are more unpredictable, higher risk depending on buyer markets and economy.

For lower risk, investment stability and maximum cash flow multi units are best.

User Stats

20
Posts
5
Votes
Gursewak Singh
  • Realtor
  • Frisco, TX
5
Votes |
20
Posts
Gursewak Singh
  • Realtor
  • Frisco, TX
Replied
Originally posted by @Jordan Moorhead:
@Gursewak Singh sorry... own a house!

Yes, I do. 

User Stats

20
Posts
5
Votes
Gursewak Singh
  • Realtor
  • Frisco, TX
5
Votes |
20
Posts
Gursewak Singh
  • Realtor
  • Frisco, TX
Replied
Originally posted by @Thomas S.:

Multi unit investing is a cash flow play where as SFH investing is primarily an appreciation investment. Value of SFH properties is driven by home buyers where as multi units are generally driven by rental rates and investor markets. They may both appreciate but SFHs are more unpredictable, higher risk depending on buyer markets and economy.

For lower risk, investment stability and maximum cash flow multi units are best.

Thomas, Thanks for making this very clear. It makes perfect sense now. I appreciate it Sir. 

User Stats

1,800
Posts
1,389
Votes
John Woodrich
Pro Member
  • Flipper/Rehabber
  • Minneapolis, MN
1,389
Votes |
1,800
Posts
John Woodrich
Pro Member
  • Flipper/Rehabber
  • Minneapolis, MN
Replied

Multifamily are typically produce better cash flow but a good deal on a SFH can out perform a multi. I have both types of rentals, I like the houses a little better as they seem to be less work and you don't have to deal with tenant/tenant drama.

  • John Woodrich
  • User Stats

    20
    Posts
    5
    Votes
    Gursewak Singh
    • Realtor
    • Frisco, TX
    5
    Votes |
    20
    Posts
    Gursewak Singh
    • Realtor
    • Frisco, TX
    Replied

    @John Woodrich, @Thomas S. @Jordan Moorhead @Bjorn Ahlblad, @Jerimy Justice Thank you all for reply & courage. 

    Here is another one at you guys.

    Duplex property In fort worth, TX

    Asking $ 225,000

    ARV $ 205,000

    Year 2006

    SQFT 2226

    Both side occupied $ 1250 Each(Section 8 tenants for 3+ years) 

    Owner only want to do owner financing only for 5 years @ 10% with 20% down. I offered all cash, he doesn't want to do it due to Tax issues. How would you guys able to tackle this? Is this even worth it too look? 

    Been on market for ever Since may 2018. Actually he bought it for $171000 in May & listed 2 days later for $ 225, 000. 

    TIA.

    User Stats

    1,800
    Posts
    1,389
    Votes
    John Woodrich
    Pro Member
    • Flipper/Rehabber
    • Minneapolis, MN
    1,389
    Votes |
    1,800
    Posts
    John Woodrich
    Pro Member
    • Flipper/Rehabber
    • Minneapolis, MN
    Replied

    @Gursewak Singh I won't purchase a property over ARV and his terms are horrible. Add in Section 8 and I am out.

  • John Woodrich
  • User Stats

    4,814
    Posts
    3,393
    Votes
    Jordan Moorhead
    Agent
    • Real Estate Agent
    • Austin, TX
    3,393
    Votes |
    4,814
    Posts
    Jordan Moorhead
    Agent
    • Real Estate Agent
    • Austin, TX
    Replied

    @John Woodrich I know a lot of people in Texas who get 10% interest. It's nuts!

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    User Stats

    1,800
    Posts
    1,389
    Votes
    John Woodrich
    Pro Member
    • Flipper/Rehabber
    • Minneapolis, MN
    1,389
    Votes |
    1,800
    Posts
    John Woodrich
    Pro Member
    • Flipper/Rehabber
    • Minneapolis, MN
    Replied

    @Jordan Moorhead wow..  Suppose some people are willing to do anything to make a deal work.

  • John Woodrich
  • User Stats

    20
    Posts
    5
    Votes
    Gursewak Singh
    • Realtor
    • Frisco, TX
    5
    Votes |
    20
    Posts
    Gursewak Singh
    • Realtor
    • Frisco, TX
    Replied

    I appreciate it. I guess it may be common in Texas but I am not desperate, I will wait for the right deal. 

    User Stats

    18
    Posts
    11
    Votes
    Jerimy Justice
    • Flipper/Rehabber
    • Lakeland FL
    11
    Votes |
    18
    Posts
    Jerimy Justice
    • Flipper/Rehabber
    • Lakeland FL
    Replied

    I'm in agreement with everyone on this. If you buy above the ARV is he winning or are you? He definitely is winning. You always makes your money when you are buying and you need equity. When I buy I try to be 15%-30% below the ARV. I understand that he doesnt want all that money in one year because he doesnt want to pay a ton of taxes but I do feel like at 10% you are getting hosed for sure. I really feel like you are doing the right thing's by looking for guidance and analyzing deals. Practice makes perfect and patience is the key to finding the right deal. I believe in you buddy! GOOD LUCK!