patrick.net

This is very market specific. I don’t know the ID market, but most of the Midwest guys have SFH rentals. Biggerpockets is the place to ask these questions as it’s a nationwide platform.

For my local market, it’s better to own multi-units. Example: I have a 2,100sf 4/2.5 SFH, which rents for $4k/mo while 525sf 1/1’s rent for $1.8-$1.9k/month and 350sf studios rent for $1.6-$1.7k/month.

Same square footage at $4k/mo, $7.2k-$7.6k/mo for 1/1 units and $9.6-$10.2k/mo. Of course, the multi-units have more kitchens and bathrooms to deal with, but they also have only 1 foundation and 1 roof. They cost the same to paint the exterior and maintain. They appreciates similarly while generate higher cash flow and principal pay down. The goal is to buy them at good prices, hold them long term and let the tenants buy you the buildings.

Hire a good property manager and be an investor so you don’t get burned out as a landlord. As you scale up, find a good handyman/maintenance person, which will save you boatload of money.

I'm a SFH landlord in ID. I left the day to day to the property manager, which took me a while to find a GOOD one.That was the hard part. So far no problem with tenants, ID is very landlord-friendly. But I think the market is very local, Boise might be quite different that central or Eastern.

thanks guys, i guess i just have to price it down. @eman thanks, leaning toward duplex. duplex vs sfh. cap rate here is low barely 4 on sfh.

rental income is either 2k a month for house or 1800x2 on duplex. duplex has 5.5 cap rate, sfh has 4.05 assuming 5% vacancy and 10% cost.

FortwayeAsFuckJoeBiden says

Eman says

At this point, I don’t see myself ever going back to engineering. I’ll work and be a real estate investor until the day I die. There were moments I reflect back and thought had I accepted the offer to work for the Water District, what would my life be like by now?

Eman is there a target cap you recommend to not go below on rentals? im looking to invest into few here, but cap is pretty low around 4. im in ID as you know. these seem to sell every year too, noone holds them.

or just look for total fixers, sweat equity fix em up to get better cap?

Fortwayne, I’ll respond here so we’re not clogging GNL’s thread. I don’t look at “existing” cap rate but rather at “stabilized”.

Say the market is selling/trading at 5 cap. However, I’m willing to pay 4 cap for an underperforming asset and getting a 7 cap once stabilized. To an untrained eyes, I’m an idiot. However, there’s 40% to gain in equity once stabilized. This is a scalable biz model as once it’s stabilized, you can do a cash out refinance, get your equity back and do another deal. Rinse and repeat.

Appreciation/equity is the cake. Cash flow is the icing. If there’s no appreciation, might as well put your money in treasuries and make over 4% guaranteed now.

I think it really depends more on your renters than your rental type. Invest in proper vetting of your tenants and you'll be fine regardless of housing type.

Saying this as a lifelong renter who has noticed not every owner/manager is smart enough to appreciate good tenants.