All Forum Posts by: Lily Wang

And why would anyone allow their property to be used as a group home at market rent?!

@Wendy Patton Thank you for the reply! The operator doesn't appear to be licensed. Would it be a cause for concerns? Would that make the home an illegal operation? Although I'm glad that he's upfront about his intended use. What group meeting were you referring to, btw? Are there slides or notes I could look through to be better aware of due diligence matters etc.? 

Hello, 

I'm approached by a group home operator in the area about renting my property at the listing price. My impression was that the rent for the aforementioned purpose would be significantly higher than the market rent, as much as 30%-50% more according to a post I've read on here. What have some of your experiences been? 

Also, would we be signing a commercial lease instead of residential? What stipulations would be typically included? How much additional in insurance would I be expected to pay on the property with the lessee operating a business out of it? For those familiar with Michigan laws, is there a maximum of 6 residents for such homes or does the cap apply to licensed facilities only? 

I'd appreciate any helpful info from the community in advance. 

Lily

Hi ~ It's my first time posting and would greatly appreciate your help. I've come across blog posts on the multifamily vs sfh advantage, but in terms of #s, annual roi for a unit in multifamily is often inferior to that of a sfh, at least in my area, and that doesn't take appreciation into account. I'm in no hurry to expand the portfolio but would rather optimize return, and want to be hands on in managing. Would sfh investing make more sense for me until I've reached a certain # of sfh then consider multifamily as a way to consolidate asset and streamline management?

A related question is that we own our primary residence and two rentals, one sfh and one condo, free and clear. What would be our best loan options for the purchase of additional rentals, either sfh or multi?

Many thanks!

Lily

Hi ~ It's my first time posting and would greatly appreciate your help. I've come across blog posts on the multifamily vs sfh advantage, but in terms of #s, annual roi for a unit in multifamily is often inferior to that of a sfh, at least in my area, and that doesn't take appreciation into account. I'm in no hurry to expand the portfolio but would rather optimize return, and want to be hands on in managing. Would sfh investing make more sense for me until I've reached a certain # of sfh then consider multifamily as a way to consolidate asset and streamline management?

A related question is that we own our primary residence and two rentals, one sfh and one condo, free and clear. What would be our best loan options for the purchase of additional rentals, either sfh or multi?

Many thanks!

Lily