All Forum Posts by: JD Peters

Okay let me be more clear in my question. I know the numbers for California. That is a no go for single family investing. I don't invest for appreciation, that is gambling. Invest for cash flow. What I am considering is buying a multi and living in one unit and renting the other. That would allow a conservative estimate of saving me $1k a month. Or invest in other markets and try to cash flow about the same. As for why single family homes, there are any number of reasons why you would invest in those over multi or other way around. Both of which have been debated on Bigger Pockets. My theory is it would be ideal to conduct one transaction and "save" $1k a month on my living situation, which is my mind is the same as cash flowing $1K if my cost of living remains the same. What I am soliciting for is what you would do in that same scenario and why.

Okay here's the scenario, faced with two courses of action. I live in Southern California, where obviously it's expensive to live. Perhaps homes are overvalued by 5-7%. However I have considered purchasing a multi-family home to utilize in house hacking. This would save me considerable $ on a month to month basis. Conservatively about $1000. Downside is large downpayment and maybe an overpriced market. Now on the other side I could take that down payment for the multi and purchase a few single families in other markets and cash flow all day at about $300-600 a home. Downside is multiple transactions and my cost for housing remains the same or perhaps goes higher if rents rise. Now comparing the two I am leaning toward the multi and saving myself about $1k a month or maybe more in one transaction rather than trying to acquire 3 single families and cash flowing $900-$1800. Here's where you guys come in. What would you do?

Does anyone have any experience with turnkey operators in Indianapolis and Memphis? I have seen a lot of replies on these two areas, but not many recommendations. Thanks, JD