SFR or Multi-family?

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@Arlan Potter one thing I would be on the look out is the term on that loan. I would not touch any recourse debt that is less than 7 years.

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Almost 4 years ago I had $96k available. We bought a 32 unit apartments, with 10% down, 20% seller financing, 70% bank financing. When we bought them, rents were $18,680/month. Leverage

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@Marty Summers you said a mouth full in that last sentence. "so this next purchase is real important to launch us to the next steps."What is the next step? Is it out of your job, vacation fund, retirement money added to a 401k, taking care of aging parents....You determine what the goal is and the answer will become crystal clear. I personally like SFH in my area for appreciation. But I own all multi family properties because, while smaller multi families (2-4) don't appreciate in my area, I buy them for cash flow which is my priority number one. The more doors, the more cash flow.That is obviously my very simplified strategy. But define what the end goal is you hopefully that will help you.

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Account Closed yes, but I had long banking relationship with the bank. It was still difficult to get done.

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@Arlan Potter on your multi unit purchase did the bank look at your personal tax return?

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Looking to expand. Lots of great reads in the bigger pockets forum. Since implementing a new business plan 2 years ago my partner and I have accumulated 27 doors with a few small multifamily properties but mostly SFR. Most of our purchases are in lower end areas but we rent out to HUD paid rents or Section 8 for most of our rentals. We have made lots of purchases where we add bedrooms. Some from unnecessary dining rooms, Others from living rooms that are unnecessarily large. Many 2 bedrooms that have become 3 during rehab. Thank you Brandon Turner for highlighting this value add technique in his podcasts. Shout out to you! We have increased rents on about 8 units now by over $200/mo each by turning 1 and 2 bedrooms into 3 bedrooms. Right now we have a 4 unit that were all 1 bedrooms when purchased, turned into 5 units with 10 bedrooms total. There was a lot of unused and underutilized space when purchased. We have put up walls, torn down walls where needed, and update where needed to attract better tenants. Plumbing and electrical changes have been made where needed as well as boiler and water heater updates to accommodate the extra tenants. In the mean time we have accumulated a solid team of contractors. Currently I self manage all units as well as the construction projects and I am looking to do this for the next couple years while I slowly turn this task over to my real estate team. Currently we are looking to move up to a medium size multifamily, 20-50 units. We have a few properties in mind and still looking for others. Purchase price of 400-700k. Any advice appreciated. We Currently have about 15-20% to put down but will also need rehab monies. Our current mid term plan is to accumulate rentals mid to long term and replace or add to current income within 5 years. All monies reinvested right now. Right now it’s a partner and I. We have a goal to create 100 units at an average of $250/mo free cash flow per unit which will create $150k each for us to replace incomes if needed, preferably add to or keep building. This per unit number does include adding in property management even though we are handing in house right now. Adding 25 units in one purchase would double our portfolio and place us 50% toward the goal. Anyhow that’s the goal right now, value add purchases. Most purchases to date are low end cash buys. We would like to start recycling cash at this point as we have a lot of equity but mostly properties that are under the 50k mortgage amount.

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Donot Buy sfh . Look for tri or a quad

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Hi Marty,It really depends on your goals and where you are at in life.If you are risk averse, then buying a house for cash is probably your best bet. If you are in the "Expansion" stage of real estate acquisition then it sounds like your $100,000 could be used to buy 3-4 units in your market if you use financing.

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@Arlan Southern, In market but I am interested in learning how to invest intercity or interstate. What did you learn thus far on your duplex?

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@Arlan Potter what market? @Marty Summers here is a different perspective... If you want to scale then go bigger. Take your $100k and put it in your back pocket and go find 10 other people from your RE meetup with 100K and put together a larger deal in the Indiana market. You will have greater cash flow ,prob be able to hire some basic management so you can have less headaches, and get paid for putting deal together. I own a duplex as well. Im looking to sell and move equity into next bigger MF deal. It was a good start for us, taught me a lot.