All Forum Posts by: Brandon Morgan
Brandon Morgan has started 40 posts and replied 112 times.
Post: Owning rentals. condo vs. Single family cash flow.

- Posts 112
- Votes 108
Hi all, my plan is to own rentals long term and receive cash flow. does it matter if I go for a single family or Condo? assuming the condo unit lets me rent it out. my plan is to live in the condo/ SFR for a year and then rent it since I already got approved for an FHA loan. right now it is looking like the condo might be a better option for me considering my area in jersey and the location of the condos. depending on the HAO fees I feel the cash flow may be better with the condo. Any suggestions or personal experiences in this?
if I get a SFR I am looking at the Monmouth and Middlesex county areas of jersey. but for a condo I am going to go for the Essex county/ city like areas of jersey near the train and NYC.
I made a few post with similar questions but I am trying to think of this from multiple aspects.
Post: Owning rentals/ house hacking for single families?

- Posts 112
- Votes 108
Quote from @Julien Jeannot:
I would also agree. A multi would best.
What strategy are you looking to execute long term?
A lot of my client's initial goal is to cash flow net zero in a duplex while living in one of the units. I'm in Seattle where is market is expensing and competition fierce. What I have seen work instead is jumping into a multi that needs work with negative cash flow, creating value and raising rents.
Although the cash flow is negative in the short term, it much better then paying full rent. Over time, 3-5yrs typically, the cash flow improves to positive, and the equity appreciates significantly.
my long-term plan is to rent out multiple properties and receive the cash flow. i want to start with house hacking to make it easier in the beginning.
Post: Owning rentals/ house hacking for single families?

- Posts 112
- Votes 108
Quote from @Alexa Ferguson:
Hi Brandon! I have lived in 3 houses over the past few years and house hacked all of them - all single family homes. As you said, reasonably priced multifamily properties are hard to come by in many markets (I am in Denver and that is the case here), so SFH is the more affordable option. By making it your primary residence you can also put as little as 0%-5% down, depending on the lending program. We would look for homes with a space that could be separated so we didn't have to share space with our tenants. This could be a basement, upper level, wing of the house, apartment over the garage, etc. - any part that can be accessed separately. Denver homes commonly have a separate entrance to the basement, so that is the form ours took. You can then rent this space out as a long-, medium, or short-term rental, based on the strategy you like. We do STRs because they generate the most cash flow and are allowed in our area. We have consistently covered our mortgage for the past 3 years using this strategy! Hope that helps!
wow that's very useful to know. thank you.
Post: Owning rentals/ house hacking for single families?

- Posts 112
- Votes 108
Hi all, I am in new jersey and I am new to Real estate. my plan is to own rental properties and also house hack. my original plan was to find a duplex but the low inventory and competitive market has been making this really difficult. are buying single families also a good option for this? I already got preapproved for a loan and have 30k ready for disposal. I know for single families I can rent out by the room. but is the process for that complicated? are there legal issues? open to any suggestions for owning and renting out single families. if anyone has any experience in this matter I am more than ready to listen.
Post: type of property to buy for renting out.

- Posts 112
- Votes 108
Quote from @Jimmy Bostic:
@Brandon Morgan For house hacking I'd suggest looking at single families or multifamilies rather than condos. I know you said the supply is low for multifamilies, but you could consider looking off-market. A duplex for a first hack is a good option. Best of luck
yes but my issue is in my area Multi-families are almost impossible to come by. I was searching for duplexes for the longest time. and single families are still extremely expensive. my goal is to rent properties out. at this point I am just trying to get my foot in the door.
Post: type of property to buy for renting out.

- Posts 112
- Votes 108
Quote from @Shawn Mcenteer:
Hi @Brandon Morgan house hacking single family or multi family work in NJ. single is a really good way of building equity to get to a long term buy and hold Multi. Both strategies work.
yes but my issue is in my area Multi-families are almost impossible to come by. and single families are still extremely expensive. my goal is to rent properties out. at this point I am just trying to get my foot in the door.
Post: type of property to buy for renting out.

- Posts 112
- Votes 108
Quote from @Julien Jeannot:
I agree with @Jimmy Bostic.
I'd shy away form Condos:
- They tend not to appreciate as fast of SFRs or multi
- HOA fees and assessment can eat you alive. I also see it as a reserve which you do not get back when you sell if unspent.
- Loss of control.
I got started with a multi where the cash flow subsidized my mortgage. I forced equity and raising rents and the rest is history. A solid SFR with rent by the room is also a great option. Find one that needs a lot of work.
Quote from @Konstantin Ginzburg:
Condos can potentially be a good investment but there is risk that comes along with them that needs to be considered. One big upside to real estate is that your revenue (rent) appreciates over time while your mortgage payment remains fixes except for insurance and taxes that can appreciate as well. By purchasing a condo, you will need to deal with another appreciating cost in HOA fees which can slow or eliminate your cash flow. You would also have to follow any guidelines set for by the condo HOA so getting a feel for the management is crucial. For example: how do they feel about short term rentals? How do they feel about renters in general? Condos can still be a good investment, but there are just other factors and due diligence that need to be observed when you are entering that market.
good to know. thanks!
Quote from @Caleb Brown:
People have done well with condos. Good part about them is low maintenance and usually quality tenants. But they are risky. The dues can get insane. They could vote against rentals or do a major repair that you have to chimp in for. I would rather do single families, you have control over it.
hmmm will consider that. thanks!