Real Estate Agent · Southwick, MA · Member since 2019 · 86 posts · 17 votes
Hello BP,
I seen a potential lead on MLS recently, a 4-plex located in a single family neighborhood. I was wondering about the positives and negatives to this scenario.
It may be beneficial because their would likely be a high demand seeing how the supply is so low, but on the flip side, I'm thinking there is no other multifamily properties because there isn't enough demand in the neighborhood. I believe in the BRRRR book, David Greene said to be cautious in a neighborhood like this, for the very reason being that it is a warning that there isn't a high demand.
I will be house hacking it and it is also in a less populated, lower income area.
Rental Property Investor · Houston, TX · Member since 2017 · 529 posts · 467 votes
6y
I don't like plexus as a rule. Harder to lease and don't appreciate like single-family. Make sure you don't pay much more than what a single-family in the neighborhood costs and you should be fine. If not, walk away.
I seen a potential lead on MLS recently, a 4-plex located in a single family neighborhood. I was wondering about the positives and negatives to this scenario.
It may be beneficial because their would likely be a high demand seeing how the supply is so low, but on the flip side, I'm thinking there is no other multifamily properties because there isn't enough demand in the neighborhood. I believe in the BRRRR book, David Greene said to be cautious in a neighborhood like this, for the very reason being that it is a warning that there isn't a high demand.
I will be house hacking it and it is also in a less populated, lower income area.
Thanks!
Anytime you've got the opportunity to take down a 4-plex you should. My opinion it's the best type of rental property. Brings in the most rental income while still qualifying for a traditional 30 year mortgage. Best of both worlds.