Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I am wondering am I best off going with single family homes or multi family units as a newbie?? I seems that renting single family homes is less stressfull than multi family. there seems to be contracts involved on multi units such as who owns what such as laundry equipment as well as there might be people in there that I would have to evict since I would inherit the old tenants also another expense that I would have to deal with. as well a single family home seems that it would have fewer repairs than a multi dwelling unit.. input on this topic, oh and what serious questions should I be asking when looking at multi dwelling units?
Last edited by ground_pounder; 03-21-2016 at 06:59 PM..
Single family homes are easier to rent and sell...
Most Housing providers I work with only want buildings large enough for resident managers...
It really depends on what your end plan it.
One of my retired friends had 5 rental single family homes in the Bay Area.
The tax law allows a 500k capital gain exclusion on owner occupied property... so you guessed it... over 10 years he moved in and stayed at each rent home prior to sale and cleared 2 million tax free.
I'd prefer to deal with one building. It would be less coordinating, less driving around. One roof, one building to paint, one tax bill, one gardener, one driveway/parking lot to pave, one sewer system, one fence, etc.
And you could live in one of the units at first.
My memory of owning SFHs, is all of the maintenance involved. Just think of everything that needs taking care of on a property, from sidewalks to trees, to driveways, porches, siding, roofs, yards, fences...ugh.
And SFHs mean more people in them doing damage, usually.
The perfect place, to me, is an apt building with mainly small studios. Less tenants, less kids, less damage.
It just depends on what you'd prefer to deal with and your long-term goals. I can see why some would prefer SFHs. I'd rather go with one bldg with lots of little studios, with one or two people in them.
I'm hoping to buy my first investment rental property within the next year, and I am focusing on duplexes. The barrier to entry (money out of pocket for purchase, licensing requirements, etc.) is much lower for a duplex than an apartment building. But you still have the financial security of more than one unit paying rent toward your mortgage payment/operating expenses. I considered buying a single family home, but I personally don't like the risk involved with periods of vacancy or nonpayment where no money is coming in. With the duplexes I am looking at, the rent from one half is enough to cover the mortgage payment/taxes/insurance on both units. It is also very attractive that there is only one structure on which to replace the roof or siding.
I am not an authority myself, but I have been doing a lot of thinking and researching and this is the philosophy that I have settled on.
..........the tax law allows a 500k capital gain exclusion on owner occupied property........ .
Not any more for rental use properties. It can only be done every 5 years and the homeowners deduction has to be prorated with the years the property was rented.
Not any more for rental use properties. It can only be done every 5 years and the homeowners deduction has to be prorated with the years the property was rented.
This is why he made out like a bandit legally... truly amazing and his wife first though he was kidding until he started to sell some of his clutter getting ready for the move.
My brother did it once... 1031 into a rental single family then moved into the rental when he got married and lived their for 3 years and had a pile of tax free cash in 2007.
No matter what it is.. for me its pretty much a day late and a dollar short.
They ended up with a Tahoe Lake View property in Incline Village they bought "Cheap" in 2009
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
?? I seems that renting single family homes is less stressfull than multi family. there seems to be contracts involved on multi units such as who owns what such as laundry equipment as well as there might be people in there that I would have to evict since I would inherit the old tenants also another expense that I would have to deal with. as well a single family home seems that it would have fewer repairs than a multi dwelling unit.. input on this topic, oh and what serious questions should I be asking when looking at multi dwelling units?
