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Updated over 2 years ago,

User Stats

22
Posts
8
Votes
Amity Word
  • Atlanta
8
Votes |
22
Posts

AirBNB - Single Family Or A Duplex? First Time Buyer.

Amity Word
  • Atlanta
Posted

Which should I do as my first investment?  My goal is long-term buy and hold and Cash flow from Short-term rentals. 

Single family vs. Duplex?? I'm totally new real estate investing as this will be my first property. I'm just not sure whether to start with single family or multi-unit. The catch is I'm planning to go the SHORT-TERM rental (airbnb) route with my buy and hold strategy. My goal is CASH FLOW CASH FLOW CASH FLOW and LOWER RISKS as a first time buyer with little funds.  So I'm aiming for CASH FLOW to build my portfolio quicker. 

SINGLE FAM Scenario 1: The single family home 3bd/2ba home could get me $27K/annually via airbnb ideally without considering non-peak season and I'd want this single family only for short-term rental purposes only; not long-term. Plus I can take advantage of the 3% conventional loan for First time buyers.

DUPLEX Scenario 2: I can get a Duplex (2bd/2ba each unit) and make approx. $13K/annually if I long-term rent one side and short-term rent the other side. With duplex you have more options/diversity on the short-term/long-term rent so I can get the experience of both worlds and I think more security in knowing that I have one long-term tenant on the other side. The plus is I get the 3.5% FHA loan. If I choose to go duplex first; then I'll never ever ever get to take advantage of the 3% conventional first time buyer perk for single family. If I choose the single family, I believe I can always get my 2nd property with the FHA 3.5%. So, Whew! That was a mouth full.

P.S. I've already done my research on the "best locations" for STR (short-term rental) in my area and crunched the numbers and did my homework which is how I got my estimated the numbers above.

Which one should I do first?

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