Fixer, STR, or Multi???

[Aja Leafe-Hall]

Hi, I am a newbie and I want to invest in Barlett, NH (a great ski town which also happens to have an excellent school and low taxes). I live in Washington state for now and wish to invest some of my home equity. my parents are local to the Bartlett area and my dad is a contractor who is also willing to do property management. My first deal fell through and I’m back to the market looking for something else. My top 3 options are radically different and that frightens my spouse! So, maybe you can all help me sort my priorities: Option 1 is an adorable 3/1 1940 cape that buts up to conservation land. Sellers are asking 225K. The payment will be too high to lease, so I am thinking STR. It is in a great location and maybe will fit a niche for “antique home”, but the main reason I want this one is it would be perfect for my family if we decide to move there in a couple years. Option 2 is a 3 Unit Apartment farm house. Offered at 268K. The appeal is that 2 units can be leased to cover the payment and the third can be a STR that we can also use when we visit. I had almost wrote this one off because it is too expensive for us alone, but then I talked to another couple who may want to partner with us. So this could be a great deal that we get 1/2 of. Option 3 is a 3/2 New Englander (1800s) for 127K. It has been totally redone inside and covered with Vinyl siding and a metal roof, but still needs work on the exterior and possibly a new septic. Even with those costs, though, it will cash flow as a monthly lease, meets the 50% rule and, if we decide to move into it will afford us to live for $600/month, vs. $1200 to rent. Okay, so it seems like option 3 is the most affordable, but is that my best option? What do I need to consider?

[Luke Carl]

@Teri S. @Aja Leafe-Hall as a newbie I would discourage long distance STR - and I would encourage several exit strategies (including occupying it yourself) - so I would cross #1 off the list for sure. #2 sounds a little shaky too... So #3 or keep looking. This isn’t even close to true. STRs are easy to manage from any distance. I teach noobs how to do this multiple times per day and every one of them succeeds. In fact in my opinion it’s the best reason to get in to the STR business. Cant fInd anything that will cash flow near you? Scoop up a condo on the beach or a cabin in the mountains. Just make sure it’s the rifht mountain and beach.