All Forum Posts by: Joshua Noth

@Yaniel Suarez I'm no expert in the South Florida market, but generally speaking, both offer their own benefits. MFH's big edge over SFH is their economies of scale. They just may require more "work" in terms of PM, repairs, etc., but that's not always the case either. I typically recommend MFH *if it is an option*. Some investors cannot afford the higher required down payment, or the extra PM rates, and so on. At the end of the day, the most important step is actually getting a property (and making sure it's a good deal, of course!)

In terms of getting a PM, it is not essential, but is very helpful.  If you are investing locally, you can certainly do it yourself, but it can become a decent amount of work, especially upfront.  Finding tenants, replacing their appliances, fixing the stuff they break when they move in, all those fun things.  

Hey @Jacob Setzer, welcome to BP!  As others have mentioned, if you are truly clueless about the subject, reading is the best thing I can recommend.  Whether it's the forums, many of the books through BP, blogs, or whatever your preferred source, immerse yourself in as much knowledge as you can.

As @Sierra Johnson mentioned, a good Realtor is a great resource to have.  Not only can they help you navigate the market, but if they are investing-savvy themselves, they can help guide you in that space as well.  Finding your preferred market, and researching it on here can be a good start to find the right agent.

Additionally, don't be afraid to invest OOS.  There are certainly benefits to investing locally: it's close, YOU know the area, you can physically see the property, etc.  However, the biggest disadvantage of investing locally: if it doesn't meet your goals, you have no other options.  With non-local investing, you can choose any market in the country to focus on.  When going OOS, I can't emphasize enough the importance of a good agent.

Hope this helps!

Welcome to BP @Ambrose Younge - there's tons of opportunities on here, a lot of the challenge is finding them.  I recommend using and setting up keywords in your posts/notifications.  Set up keywords for local neighborhoods, cities, etc. in your area that you are interested in, as well as strategies - this way you get a notification anytime somebody talks about what you're interested in!

Also, every time you use big keywords, just like you did with "Minnesota", it'll ping anyone who has those words on alert as well.  Wishing you the best of luck!

Welcome to BP @Liz GilMeza, great to meet you. STR are very strong assets, and in certain markets really stand out because of their propensity for cash flow. Because of that, they may have more work involved with them. Very important to keep in mind: determine what market(s) you are interested in, and make sure they allow STR in non-owner occupied properties. Some cities (such as Austin) do not permit traditional STR (less than 30 days) within city limits if the property is not owner occupied - make sure you clarify that before committing to a market.

Finding an investor-friendly Realtor is probably the easiest, biggest step you can take.  Not every agent understands an investor's mindset, nor works weekends.  Having someone who understands your numbers/criteria/goals can be tremendous in certain markets

If it's actually just bugs and pests that are the deciding factor, you could start with offering to have pest control always provided for the home.  However, it seems more like a general cleanliness concern, which is fair.  Your best solution to reducing that risk is screening the tenants yourselves, which isn't that terrible.  At the end of the day though, a tenant screening doesn't prevent people from making a mess.

While yes, MFH offers great benefits, it's important to meet halfway. Most times, any investment property is better than no investment property (barring, of course, that the investment itself is at least decent). You can always look into a SFH, possibly renting out the other rooms and still making it a house-hack option for y'all. Like @Taylor Dasch said, you should be on the same page as your wife on this, so determining goals/timelines/etc. can help reveal your options.

Hey @David Decosta, great to have you.  Neighborhood "classifications" are more, as @Ray Smith mentioned, based on feel - there's no set in stone criteria.  They are very relative to each person and each market.  A lot of it comes from seeing several (more likely dozens of) different properties and neighborhoods to be able to compare them.  You'll eventually be able to look at/drive through a neighborhood and instantly be able to determine your "grade".

It makes it easier for you, given that you are planning on owner-occupying the property.  You can physically walk the neighborhood and simply ask yourself: "would I live here". Many times that will answer your own question.  Hope this helps!

To help flesh out the concerns - what downsides are you most worried about? Are there markets that may "counteract" those issues?

I'm not saying your concern isn't merited, just trying to voice the other side of things.  Owning a rental property can be incredibly beneficial in so many ways: management skills, financial budgeting, long-term equity building, potentially cash flow, could be an actual residence for your son (if he house hacks)...  As @Greg Scott said, the value of the dollar is decreasing, so it's best to put it somewhere if you have the chance to.  RE has proven to be a great track for so many in terms of developing long-term wealth

Hey @John Douglass, and congrats on the RE license.  Florida is a bustling market, but still plenty of room for you to succeed.  Finding a good brokerage that has similar goals as yourself is a great place to start.  Talk with different ones, find their commission splits, what types of caps they have, how hands on they are, etc.  Being an agent and an investor can go hand in hand - many of us do it.  Wishing you good luck!

As many people are saying, the economies of scale for small MFH is hard to beat - more doors tends to mean more cash flow each month. Like you said, however, you may still be in the negative in some cases. Well - if you are looking to live in a SFH by yourself, you may spend an average of $2k a month (random number, just for this example). If we go a MFH route, and we are able to reduce that to $500, that's still a huge win in the end: saving $1500 a month is no joke. Eventually, rental rates will likely increase, and because of your multiple doors, you get more bang for your buck. Additionally, if you move out of the property in the future, you add on to that income.