I am new to BP and to real estate investing but I'm ready to jump in! I've been preparing myself through reading, listening to podcasts and meeting with successful real estate investors in my area and I had been planning to start with a single family residence. The other day, however, someone reached out to me about a 4 Unit property in my market that is a little outside of my price range but I could cover it with a a partner. It should currently appraise at or below $200K, it has 2 2 bed/1 bath units and 2 1 bed/1 bath units, current rent for the 1 bed/bath is $500 per month. Here are my questions:
1. What are the main differences between single-family and multi-units (other than amount of tenants) that I need to factor in or keep in mind as I consider this for a first property?
2. What discount should I aim for? Stick with the 20% rule for a buy and hold or settle for less in light of the margin opportunity for a 4 unit property? (They bought it for $170K and as I mentioned earlier it worth around $200K now)
Thanks!
