Since it’s a new build, I was able to negotiate some great perks, like a 5.875% interest rate, no closing costs, a fridge, blinds, and even a backyard firepit.Pros:Good school districtLow interest rateMinimal CapEx and repairs (because it’s a new build)Low insuranceHigh-quality tenants (due to the school district and being a new build)Cons:Lots of new builds in the area, which could drive down prices and increase vacanciesThe Numbers:Price: $290KInterest Rate: 5.875%Down Payment: 25%Monthly Mortgage + Insurance + Taxes + HOA: $1,480 (I got really low insurance since it’s a new build and Alabama’s property taxes are low)Property Management: 10%Rent: $1,800 (this is under market because I wanted to rent it quickly—most units in the area were sitting vacant for 100+ days.

The biggest thing with this is if something major happens are you legally covered if the unit is illegally rented. 

Investment Info:Small multi-family (2-4 units) buy & hold investment in Madison.

I have missed out on rent from an empty unit. 

@Chris Clarkson, having a partner can complicate things for sure if you're not united on direction. 

@Benjamin Ying1) Waste of time unless you are buying hundreds of units.2) Any option to minimize risk is usually a good idea.3) Always better to visit an area before investing.

For instance, targeting multifamily properties (2–4 units) is a great way to grow your portfolio.

I purchase my 1st multi family in Durham last sept, I was debating between str and long term, I went with str and I am loving it so far. my dec occupancy is Unit one 2b1b: 82%unit 2 studio: 79% So far so good and already thinking of getting another one in 2025 🤤 These are great numbers for this time of year!

* How many bedrooms per units?

You may also want to consider purchasing multi-unit properties and live in one of the units.