Real estate investing can be daunting for a beginning but defining your goals up front is very important.
Each of these have their own unique advantages and disadvantages.
You can command a higher rent for vacation homes but you will also have higher maintenance, repair and cleaning costs. What if the economy takes a downturn – how will that impact vacancy rates. Regulation continues to be a risk as local governments try to control the percentage of owner/renter mix and short term rentals.
Single family homes do not yield higher rent yields than vacation property. On the other side, you get the peace and comfort or having longer term renters who are more compelled to maintain the property.
Personally, I have been focused on single family homes in a decent school district. However, I am considering diversifying to multifamily homes to get a better monthly cash flow.
I will be updating this website for multi-family homes and will describe my journey along the way (see my current projects page). Feel free to offer any advice you may have as move into this space (please send feedback at the bottom of the home page).
- Are you looking to flip the property for a quick profit?
- Are you looking for a long term single family home?
- Are you looking for a vacation rental (short-term rentals)?
- Are you looking for a multifamily home (duplex and above)?
Each of these have their own unique advantages and disadvantages.
You can command a higher rent for vacation homes but you will also have higher maintenance, repair and cleaning costs. What if the economy takes a downturn – how will that impact vacancy rates. Regulation continues to be a risk as local governments try to control the percentage of owner/renter mix and short term rentals.
Single family homes do not yield higher rent yields than vacation property. On the other side, you get the peace and comfort or having longer term renters who are more compelled to maintain the property.
Personally, I have been focused on single family homes in a decent school district. However, I am considering diversifying to multifamily homes to get a better monthly cash flow.
I will be updating this website for multi-family homes and will describe my journey along the way (see my current projects page). Feel free to offer any advice you may have as move into this space (please send feedback at the bottom of the home page).
