Higher Price or Lower Price Muli-Family Homes

[Frank Leone]

Hello,

I have a question regarding making my first Rental Property investment. Should I buy a Muli-family home that is very high quality and needs nothing done and has potential to convert the attic into another unit. This property also has a potential to produce $1600 dollars in Rent per unit (2 total units at this time). Or buy a lower price property that needs some love that has 4 units that would rent out for around $800-900 each. The catch is that I will need to live in whatever property I pick because I am getting a 3.5% FHA loan. For the High price unit I might just be breaking even but after the first year has the potential to make almost $22,000 in net income a year VS the Lower price unit that I can start making cash flow on while I live in it about $10,000 in net income per year.

I have a unique situation. I would love the feedback and any wisdom you can share with me. 

[Derek Bailey]

@Frank Leone 

I'm looking to buy multifamily properties in B or C+ neighborhoods that need rehab or have another value add feature available. I'm in a unique situation because my current employer is going out of business in 4 years.... Challenge Accepted! So I need to recycle my funds in order to acquire more properties in a short amount of time. My plan is to use Brandon Turner's "Stack Method" and acquire 8 doors this year, then so on. 

My long term goal is financial freedom, I spent my 20s grinding away thinking all debt was bad and the stock market would do it for me. But more specifically, to acquire the doors necessary to not be forced to find another job in 4 years. 

Fortune favors the bold.  

Best, 

Derek