All Forum Posts by: Brian Dudash

Thank you to everyone who has responded thus far!

I'm trying to understand how/why multi-family is better than SFH because it seems that SFH is much more practical, affordable, realistic, etc. Again, I am very new to this so it's very possible I'm missing something but here is what I have so far:

Taking the greater Cleveland area as an example. I have been looking at SFH that average around $45-55k, then let's say you throw in around $10-15k in repairs/fix up costs to total ~$60k. Rent in the cities I'm looking at average around $800-$850 per month.

Then take a multi-family property that costs ~$250k (at the cheaper end). Average rent in these areas, as it's different than my SFH cities, ranges around $500-600 per month (let's say a 6 unit property). I understand that it's one building VS individual houses, so the risk is repairs can be 'X' times that of the MF. However, with the SFH, I could buy 1 (if not 2) in cash so I have complete cashflow coming in rather than a mortgage for 15 years, for example with the MF which will eat away at the cashflow.

I also know there is no perfect plan to follow when getting started but I'm trying to weigh the pros/cons of going the SFH route (at first), pay cash for the first couple, generate that cashflow and build it from there. Or I go the 1 MF property, put 25-30% down, get a loan, and I still would have positive cashflow but no nearly as much (at least for many years).

Has anyone done something where you buy a couple or few multi-family properties around the same time? I was thinking that if I put down 25 or 30% for each one, that I should be able to afford 2 which would help increase the cashflow. Also, what is everyones stance on 15yr VS 30yr mortgage?

I know I need to continue reading and listening to different stories, experiences, go to meetups, etc and find my niche. Thank you again to everyone responding and for your advice!

@Jeff Filali Thank you for the reply. I've been maxing out my 401k for about 2 years now (and will continue until I leave). I also do not have any debt and like you mentioned, I'm looking for cashflow properties so that one day I can retire early and comfortably without relying on my 401k (as an example).

I'm looking to buy my first (or maybe first 2) RE properties in the near future but I'm trying to learn as much as I can, find the best strategy that works for me, and build it up from there!

Thanks for the reply, Jim. I'm actually looking for cashflow and would like to obtain many properties over the course of many years to maximize this.

I need to start with 1 or 2 (if possible) and go from there but I'm trying to find the right market to start with. I'm looking in areas such as Columbus, OH, Cleveland, OH (suburbs and is where I'm from), Nashville, Jacksonville, Tampa, Indianapolis area, and maybe parts of Michigan but not sure where yet. I'm definitely am not looking for RE in California.

I am curious -- what made you think I was looking for equity growth rather than cashflow? Sorry, I'm obviously new to the game and just want to make sure I'm more clear in future posts.

I forgot to add -- some of the SFH I'm looking at range anywhere from about $40k - $60k but I've also been looking at some triplexes and fourplexes but these can go from anywhere around $400k - $1m. If I were to even consider going the multi-family route, I would have at least one business partner (who I'm actively talking about this with).

With that said, considering the massive price jumps (SFH vs MF), the SFH is the no brainer unless I'm missing something. The down payment/overall price, insurance, taxes, etc seem much lower and the ROI looks to be the same, if not higher on the SFH. I feel that I could buy more SFH rather than 1 mult-family which could also take a long time to pay off.

Hi All! My name is Brian and I'm a 26 year old originally born and raised in the Midwest (Cleveland area specifically), but I've been living in the bay area for almost 3 years now as I got my first "big boy" job in tech.

I'm a newbie when it comes to RE investing but I'm very interested in rental RE. I'm currently watching/listening to videos and podcasts, reading forums, blogs, etc and at the moment, it's quite overwhelming but I'm going to keep working at it!

I'm still trying to find my ideal strategy when it comes to the types of properties I want to invest in, such as SFH or multi-family, what market to buy in, along with how to actually go about buying my first rental property. My main goals for getting into RE investing is that I'd like to retire by 40/45 (if possible) and have the freedom of not having to work for corporate America.

Hoping I can learn a lot from this community and start my path for financial freedom!

Hello! I'm new to the RE investing world and I'm seriously looking into buying SFH and/or multi-family that will end up being rented out.

Just to give some quick background about myself, I'm 26 years old and currently living in they bay area (though live most of my life in the mid west). I currently have about $115k saved up and I'm ready to start investing!

I've been watching/listening to people on Youtube, podcasts, etc where some say SFH is the best way to go, while others like multi-family or larger investments. I understand that this can and will be different person to person but I'm struggling with a few things:

• What is everyone's preference when it comes to SFH vs MF? Any personal experiences where you prefer one over the other?
• I'm looking at a few different areas in the Midwest and Southeast but I'm struggling to found out how "rentable" an area is. Like what makes one area better than the other and how can you confirm this? (Websites, RE agents, etc?)
• Since this would be my first rental property (and first property in general), is it best to put 20% down and use the rest your money to fund other RE investments or pay it off in cash and build up from there?

Any other tips or advice is appreciated!