Hello everyone,
I have recently moved to Huntsville, AL. After a couple months of research and listening to the BP podcast daily, I am looking to invest (house-hack) in a duplex, triplex, quad within the next 6-8 months. A little background so I can help you understand my situation: I am a single 25 year old without any kids so I am flexible on my living arrangement and plan to live in one of the units. I have a steady profession with a good salary so I am just looking to increase and diversify my cash flow. I am currently renting and do not have any current debt other than a car payment.
I have a family member who is a successful residential construction company owner. He has mentioned multiple times that he would be willing to invest in property with me. My options that I am currently weighing are:
1.) Invest by myself and get an FHA loan with 3.5% down. I would lean more towards a duplex. I have never been a landlord or homeowner so I am a little nervous about going ahead and jumping into a 3 or 4 unit building.
2.) Go into a partnership with my family member with a 50/50 split. Get a conventional loan with 25% down. In this situation I would lean more towards a 4-unit complex since it should cash flow a little more if we can find the right deal. The key benefit in this is that I would have a partner that is experienced in real estate and would know what to look for and who to contact to get the process going and when issues arise. My family member does not live in Huntsville, but is close enough to where he could drive to the location within a few hours.
Any thoughts/opinions on either route? Also, what do you think the pros/cons of buying a turnkey muli-family vs. a rehab? I look forward to connecting with many of you on here.
Thank you,
Will Godsey
