My Fourth Property...
My Fourth Property...
What am I going to do? What’s my next investment?
Previously, we talked through one option I’m familiar with: Single Family Homes.
Now, let’s chat through another option I’m familiar with: Small Multi-Family (2-4 units).
Having recently closed on a duplex (2 units), my goal in acquiring that asset class was to scale my portfolio and grow. And grow it I did...tripling my portfolio from a whopping 1 unit to 3 units hahaha!
OK, that’s kind of a joke. But, it’s also true. Tripling your portfolio is an achievement, and if you view real estate as your path toward Financial Independence, you’ll most likely have to scale. Which is where the beauty of small multi-family comes in.
Keep reading for the PROS and CONS of investing in Small Multi-Family properties!
There are plenty of PROS and CONS to evaluate when buying a small multi-family. I'm personally starting to really understand the impact of scaling up and having more units under one roof. So the economies of scale are a huge benefit. But those PROS always come with CONS.
When I'm in REAL ESTATE mode...I'm IN REAL ESTATE MODE.
What do I mean by that?
Well, within the last 5 months, I sold a house. I bought a house. I bought a duplex. And now, I'm ready for the next investment.
What's my grand strategy for this next investment, My Fourth Property? To be honest, I'm really not sure yet. I plan to deploy about $25k-$35k for this next investment, so I definitely have options. But again, I need to weigh different strategies.
So let's take a look at the first investing asset class I'm considering: SINGLE FAMILY HOMES
Technically, this is where I have the most experience. Which isn't a lot. But, I've purchased 2 single family homes and also sold one. Let's touch on the Pros and Cons of investing in single family homes.
As you can see, there are plenty of PROS and CONS to evaluate when buying a single family home. I'll say this: because I started off with this asset class, and a lot of investors do, it's a great way to get started. It's a great way to "ease" into real estate by keeping things relatively simple. I really got my real estate education from single family properties and I'll never forget that!