Ep #159 – Mark Ferguson – Single Family vs. Multifamily
Here’s some of what you will learn:
-Single Family vs. Multifamily
-Typically Turnkey rental properties Someone has already made the profit
-When you have only one or two houses that are thousands of miles away from you live, you have no leverage on your management company.
-Instead of investing in Turnkey properties, invest in multifamily properties for better value.
-How to flip houses to invest into cash flowing investments.
-Single family houses are more liquid than multifamily but are purchased based on emotion while multifamily is all based on numbers.
-When you own properties that are spread out far from each other, they are harder to manage.
-In multifamily, a typical building will have all the same utilities and building materials so its easier to stock up on parts.
-In single family, if someone trashes a house, cashflow could be lost for up to 2 years.
-Average turnover in single family is a minimum of a couple thousand dollars.
-When the market crashes, multifamily will contract, but they will still cashflow.
-When thinking of long term hold, go with multi family.
-Single family homes around the median home price will do better than lower end homes when the market is rough.
-Why D class properties are not worth the hassle.
Why D class properties are only worth investing in when an area is gentrifying.
-When you are a licensed broker or agent, you have a higher level of responsibility.
-Why a broker should be part of your team.
-How to find deals with a retired broker.
-How visualization can get you anything you dream of.