Before you Plunge into Investment Real Estate you need to know this
I talk to old and new investors that have questions about should they buy multi-plex or single home investments? It really depends on what money you want to spend.
I see many ads for selling multiplexes that show unbelievable net cash flows. Most of the time they do not even have the tenants in the units but the seller is sure you will make a ton.
Multiplexes have to be good areas that have very nice rents. For example I have a 4-Plex in Tremont that I listed that demands $1400 in rent on just one of the units. That property is in a very high demand area and worth $440,000. In Cleveland that is a expensive unit. It was under contract in 1 day.
With homes there is a lower price point that you can invest with. We generally look at $150,000 to $200,000 homes. These properties are in very nice areas and in high demand. That means we have almost no vacancies and if they are vacant it is because the tenant just moved out.
Homes will also have a lager base of buyers and we only buy in areas that are trending upward in equity. There are many areas that you purchase real estate that the values are not trending upwards. Residential Homes have a lot more ways to get loans for as a buyer also.
Multiplexes do not have a large pool of buyers. A lot of higher prics multiplexes are being purchased bu buyers that live in one of the units. This allows them to live in and collect some rent for the mortgage. The buyer also has to put down less money than an investor.
Buying homes that are trending upward and collect top rents are the best way to invest in my opionion. They cash flow consistantly and they have more buyers when you are ready to sell your investment and create wealth! Remember Equity build wealth!
Need more informatioin? Call me (Brett) 216-703-5740 Fathom Realty or Sign in below for more information
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