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Better investment single family or duplexes?


a single family foreclosure with about 20k in equity or a four unit duplex that is fully occupied, and what would make one beter than the other

run the numbers, based on what you will pay, and your costs, and you tell us
get one of those landlording for idiots books, or any simple landlord guide, they will tell you how to calculate your montly profit or loss

duplex because if somebody stiffs you at least you have the income from three others until they get the boot.

It depends on whether or not you want to be a landlord who gets called at all hours of the night from several different people and not get rent from all of those or you can chose to receive a call from one person who needs you at 2 a.m.. The choice is yours......

I personally wouldn't buy or know of any investor that would buy a house with less than 30% equity in it.

A foreclosure also doesn't mean you will get a good deal for your money or that the house may have been abused with holes in the wall, plumbing stopped up, etc.

Are you looking to flip or become a slum lord? I would buy the single, fix it up and be gone!

Depends on your investment objective. As a short-term investment or if you're flipping the property, go with the single family with the built-in equity. For a longer-term investment rental property that will generate cash-flow over time, it sounds like the quad might be a better deal.

Either way, its important to run the numbers closely, particularly on the rental property to make sure that the potential rental income covers your debt and operating expenses (taxes, insurance, maintenance, vacancy, etc...)

You would have to calculate your numbers to see which is the better investment. Depending on what your monthly expenses are, it might be better to go with the duplex rather than the single family. Then again, if you purchase the single family in a rapidly appreciating neighborhood, it might be better to go that route.

Do a a cost analysis on both properties, and the amount of income each brings in (for the single family, it would probably be what you bring in with your day job). Then I would do some financial projections, based on the historical appreciation rate of the neighborhood each respective property is in (usually 5-10% conservatively) and see what the property's value would be within your specific timeframe. If this value is more than what your loan amount is, and you are able to cover the costs, then I would go with the investment that provides you with the larger return on investment.

Hope this helps...

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