All Forum Posts by: James Ryan

Thank you for all the helpful advice. I will dig deeper to get all the numbers to see the big picture of each house. Again thank you so much for helping pointing me in the right direction! 

Hello Everyone,

I have been researching real estate investing a lot in the past six months trying to learn as much as I can before getting my feet wet and jumping in on a property. After doing my research I have decided that I would like to pursue multifamily homes due to the increased cash flow and also the separate rent payments from the different units helps spread the risk instead of relying on one rent check from one family. Upon doing some research on homes in my local area I have come across two houses that were both multi units, one was a duplex and the other was a quad. Upon looking into to the two houses I came across the rent for the two apartments or projected rent. The duplex brought in $2400 where the quad brought in a total of $2500. This is where I started to wonder regardless of if these rents were accurate or not. If there were two houses that had almost the same income but one was 2 units and the other 4, which would make the better investment. At first thought, I said the quad but then after a little while I started thinking that I could only imagine four families living under one roof could get hectic and make the turnover rate of the quad higher than the duplex. If that was the case then the duplex would be better, on paper any way, but then on the other side the duplex is spreading your risk over only two units so if you loose a tenant that is half of your income, where as in a quad when you lose a tenant its only 25% of your income. I wanted to just ask for any advice on this topic and my example of the two houses with very similar income but split over two units and four. If you came across this scenario which would you lean towards and your reasoning behind it.  Also any other advice for a young investor looking to get started. 

Any and all advice is appreciated and I would just like to say thank you for taking your time!

Hello Everyone!

My name is James and I am new to Real Estate. I am particularly interested in multifamily homes. I have done research into rental properties and it seems multifamily homes seem like a good start. I came across FHA loans and was wondering if anyone was pretty familiar with these loans. I was wondering if I were to get approved for one for lets say a quad and after a year or two decided to move out. Would that complicate my mortgage if it was an FHA and I wanted to move out. Seeing how in order to get approved it has to be for your own residence. That was one of my big questions. Also would foreclosed homes be worth looking at since you can get them so cheap or are the investment costs to repair them generally too high to where they are a money pit and a hell house.

Thanks for your time!

Any and all advice is greatly appreciated.

I'm here to learn from people who have done it before. All advice, tips, tricks, and opinions are welcome in regards to all real estate but primarily multifamily homes and first getting a start in rental properties.