Multi Family Housing = The Big Fish
It seems everyone here is good with Cryptos and other tech oriented investing. Are there any professional landlords here?
I would love to hear some opinions on investing in multifamily properties, whether from the US or abroad. Most people invest in single family homes, and leave the multifamilies to the wealthy or large organizations. Right now I've noticed multi family properties are more affordable than ever.
I recently got into the game with a 4 unit for $100k. Mortgage of $600, each unit rented at $550 (total $2200), roughly $1600 a month income, minus expenses. I've seen properties for sale fitting these same profit margins, scaled for their respective areas, for sale all across the US. Currently I'm eyeing a 22 unit for sale for $600k in a similar are to the one I just bought. It's entirely vacant and I would like to learn exactly why the current owners failed before going further, but it's a further example that the deals are out there to be made.
A typical single family home in my area will sell for $120k to $150k and rent for about $800. Yet the multifamily properties can regularly be found for $20k to $40k per unit and rent for $500-$700 each. As I scan multiple listing services across the US this is the same ROI as other areas, albeit scaled for price differences.
If you're considering rental property, I recommend you learn about multifamily properties, the different financing options available, and laws regarding them. While I started with single family residentials, I've learned apartments are the better option.
I would love to know your market because that sounds like an incredible investment. The cap rate on your quad is fantastic. I've been looking for multi-unit properties in my area for the last couple of years, but haven't been able to find anything that would profit enough for me to pull the trigger.
I'd caution folks to be sure to study up before simply jumping in. This coming from a mortgage broker in Washington state.
Well, I'm in the coastal area of Virginia known as Hampton Roads. I see you're in Spokane. I know it's a little ways off but I did check out the market on the western side of Puget Sound, Bremerton, Port Orchard, down to Tacoma or so and up to Poulsbo. I saw some good properties and even some distressed extended stay hotels that might be neat investments. I'm sure that's a solid 8 hour or more drive from Spokane, but may be worth looking into. Personally, I can't handle the rain there :p beautiful countryside though
Oh yea it's definitely beautiful over there. I was looking for multi-units so that I could live in one unit and use the FHA 3.5% down, which is why I was being quite picky since I would be living there as well. I'm sure if I went strictly for investment purposes I could find other options. That's awesome that you're getting a 1.6% return though! A couple more of those and you will be sitting pretty!
Thats the thing. I could never live in my fourplex. I would have to be in a REALLY tight spot to consider it.
Thats currently what I'm looking for as well! It is tough to find a 4 unit decent priced to live in. But you can also use a 203k on a 4 unit, although I'm not sure if this raises down payment?
Yes, multi-family properties give a better bang for the buck then single-family rental (which is what I own). However, the numbers need to work either way.
In my area, South Florida its very different to find a small multi-family that shows positive cash flow once I run the financials through my property calculator.
I plan to start looking in the midwest come 2018 where the numbers look much better.
Always nice to see another real estate enthusiast on steemit. I post about RE here a bit but mostly on my scaredycatguide.com website.
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And believe it or not- trailer parks have even higher yields. Just buy one that has municipal water and sewer, so you dont have the added expense of treating the drinking water and waste water and the regulations that follow.
Good Info! I've been looking at some tiny lots with asking prices of like 2-3k because they're too small to do anything with, but it would be neat to put trailers on them and rent them out. Too bad most localities have ordinance and zoning issues with that idea. I would love to buy a small trailer park to keep it moving though!
Also, from what I've learned, it's fairly simple to get a mortgage on a 4 unit property. The banks probably wouldn't be as favorable to a trailer park. But one day I won't need them!
The great thing about trailer parks is- you rent the lot. They own the trailer. If the roof leaks, or the toilet need fixing- its their problem. If they bring in a new trailer, and the owners leave- the mortgage company will pay YOU the lot rent. I have a freind in Starke who has a trailer park, and he gets them on lot rent, water, sewer, has a laundrymat and some video game machines and vending machines. He sold his Electical contracting business and started building more parks, pouring slabs and installing infrastructure. Many of his renter are military, and usually stay a few years then move on to wherever they get transfered to.
Thanks for the heads up @sether
No problemo!
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Florida is probably more expensive, due to hurricane insurance, and with a large portion being elderly- having to deal with handicap access and other issues, is probably why the owners are wanting to sell it. The governor of Florida just passed a law requiring generators in nursing homes and other places after Irma, and this may have an impact aswell.
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