Which Project Would You Rather Have In Your Portfolio

[Matthew Perry]

Simple game of would you rather:

Deal #1) Three Unit Multi-Family

      Cost: 950,000- minor costs for updating (paint, buffing hardwood floors, minor electrical work totaling 7,500)

1. Two units rent for 2600 per month (target of 2800 year 2018)
2. Penthouse luxury unit rents for a premium of 3000 per month (target 3200)
3. Parking on site rents for additional 250 per month
4. Taxes: 7200 Insurance: 2200 Various Additional Costs: 640 per year
5. It rents year over year and has never been on the market more than two weeks

Deal #2) Single Family Flip 1.  5200 Square Foot Home 2. Five Bedrooms 3.5 Bath 3. Purchase Price: 875,000 Rehab Price 500,000 4. Comp sales: 1,900,000 to 2,148,000 5. Timeline from purchase to sale closing is 9 months. 6. Taxes: 8900 Insurance: 2800
Lets say all things on the financing side are equal- joint equity financing where partner is bringing 50% of all costs, and then shares 50% of the profit however will give you the opportunity to buy out at cost after three months or with 5% interest at sale closing.
Pick your deal and make your case.