What is the BEST REAL ESTATE INVESTMENT? (single family vs. multi family vs. apartments)
ฝัง
- เผยแพร่เมื่อ 1 ต.ค. 2024
- Pros and cons of investing in SINGLE FAMILY VS. MULTI FAMILY VS. APARTMENTS.
In the last five years, I have purchased one condo, multiple homes, two duplex’s, five fourplex’s, one eightplex, a 24-plex and two commercial buildings now totaling 60 doors of buy-and-hold real estate. When I started investing in real estate, everyone that I talked to had a different opinion on the best way to invest. After years of investing and trying single family, multi-family, residential apartments, and commercial buildings, I decided to clear the air on where the best place to invest is with this video.
Many wonder what is the best real estate investment? In this video, I talk about the pros and cons of investing in single family, multi family, and apartment complexes. I help you understand the risks and advantages of both so that you can make the right decision for you. On top of all of that, I reiterate the point that if you have done your research, you can find success in anyone of these investments.
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Great comparison of the different types of investments! I also love multifamily, It seems like the best balance between favourable financing, and great cash flow.
Kellan - Real Estate / Financial Independence thanks man! Really glad you liked it! You know your stuff! 😜
Thank you 🙏🙏🙏🙏
START WATCHING AT AROUND 3:50
Jin Eom you didn’t like the beginning!? 😜
Love your video.
I just have short tempers.
Jin Eom that fair 😜
Ty
Thank you
I always have to speed up the video to at least 1.5x when i watch this guy
For once its nice not to hear someone talk at 200 words per minute and screaming on TH-cam
thanks for the tip LOL
Unit size is irrelevant. Its about cash flow every month
Jake Curtis I like it!
So true. I have a 2 unit that out performs my 3 unit. The 2 unit is a slightly better neighborhood and less than 1 block from train/bus station. I also can charge slightly more because of location.
It is depend on the location but in general multi-family has a cash flow
Not really
And can you make a video explaining how you bought a property (a duplex for example) and walk through every single think is in your mind from a beginner perspective and adding up with your experience perspective, until the purchase of that property m. I’d love to see that
Mosiah Martinez will do! When are you getting yours!?
Yes, please!
Jonathan Barley-Alexander 😜
@@ChandlerDavidSmith did you make one yet? Would love to see this too
Mosiah Martinez
Yes, Please
Key is location, location, location
From what I’ve experience
Playback 1.5x speed
ihtfp004 haha thanks! Sorry, I’m a slow talker 😜 thanks for watching!
Bro you saved my life 💯😂😂😎
1.25x speed is perfect
Respect ✊
Your taking speed is fine, your words are well thought out. No one can talk as fast as we can think.
You can get bogged down with cheap single family homes because they can turn out to be money pits. Better to get a good quality multi family complex.
Interesting view
You said it. Cheap
As someone just getting into real estate, this was the most comprehensive introductory video I've seen on here. You're easy to listen to. Thank you sir. Also using residual sales money to invest into real estate. Do you do any private consulting?
Enrico Palazzo thank you! That’s very kind of you! I do some consulting but it’s more on the side and limited because of the other places I’m investing my time. If you are interested you can reach out to me on Instagram or facebook @chandlerdavidsmith
"Jack of all trades, master of nothing." Don't be a Jack!
Nikki H let’s go!
Love the video Chandler! Singles and small multi are a great way to work up to apartments.
Chandler David Smith we have a couple but they are student rentals so technically not rented as single family’s. But more multi family than single at this point.
so true! thanks for watching!
@@robc6310 i love it!
I hate to say there’s no such thing as a stupid question & then read some of the questions in the comments. People, please! Ya gotta be on it to win it. Remember the beginning of the video....
Single family, I don't wanna live in such a big world, a nice normal size house is fine by me.
Congratulations 🍾
And thank you for your insight......
I did acquire a 4plex
Best move I did
Subscribed 👌🏽😎
I Am Maximus thank you! That’s awesome! Congrats!!
Can I ask how you did this?
What city?
Hows your fourplex going? Im looking to buy one in my area
Is it me or is it hard to find a multifamily home in a nice neighborhood/good school district? Do you consider this when buying rental property units?
Me too. In my area , they tend to be in higher crime areas.
I would love to see a video on turning single family units into duplex/triplex. There are so few small multi unit buildings in my area.
That’s a liability w/permits, etc.
You are by far the best I've ever come across on real estate. You are completely honest, and always show the numbere. Really wish I could get you as a mentor 😡😁
Tevin Ballislife thanks so much! That means a lot! Let’s link up on Instagram
Man, that is some outstanding content my friend 👏.. I am a veteran and I run a Veteran's group that aids service members with self development tools and financial advice. I would love 5 minutes of your time to get a better sense of direction on this market. I believe it would be great knowledge for my guys and also feel we can bring you some value as well. Thanks again for all the amazing content! 💯👍🏼
I purchased a duplex last year. What should I do next? Build duplex? Look for existing duplex? How can I do it since I already have an FHA loan?
Eli Mi Dios after a year you should be fun getting another one. Even if you are not, if you move into another duplex you can at least get a 5% down loan without FHA. So if you are ok moving every year, do that!
i live in miami the barrier of entry is the bridge to Valhalla...
No way, there are multi units all over in fort Lauderdale, Dania beach etc 300 or less with great returns. Move into one and house hack
You dont cover that newbie that dont have any money but have the drive and dream for a better life but no one will give him or her a fair chance because of experience lack of. Or they make it impossible for them to qualify and this one really piss me of is when they tell them they will fund the deal at such high interest rates and points eat up there profit but they take the deal because they had no choice. I been doing this for several years and to see people like you do videos for people that have money and you leave others out you forgot what it took for you to get started. That's like gurus advertising programs any where from $999 up front and $99 a month or $1995 up front and $99 a month that shit is crazy a person with a family cant do that but they want you to get more experience totally not making it easy for the new person. Some one gave me a chance and didnt even know me and he still fund my deals today. I pass it forward but guys like you dont impress me when you talk about how much money you have but you focus on the people that have money and dont do any think to help the new person if you are not lying about the deals you have done. I'm not impress
Very informative breakdown my good man! 👍
Jermon C thanks! Glad you liked it!
This is what confuses me with a single family property. Unless there is some common sense thing that I am not realizing but how are you supposed to make cash flow or profit when that tenants rent is going right towards the mortgage to pay it off? Versus if you owned a multi family property then you could take 1 or 2 tenants rents and put it towards the mortgage and then take the other tenants rents and put it away.
Edit - unless you can make profit from the single family by renting it out but you won't profit much maybe like 300 a month? Hope I am making sense..
That's true. I'm going thru same thing with my multi vs single home right now. Single is high risk & not profitable in most cases. I just bought one & barely making $35 a month 🙂
@@kimprince6048 what are you going to do now
@@MCrelationz increase rent later
Just wanted to pop in and say I love you.
Thank you! Haha
Could you do a video that talks about VA loans? Also would be awesome to talk with you and get some advice on a first investment property!
Maybe eventually. I just like to talk about stuff I’ve actually done
Chandler David Smith I understand. I just came back from deployment and I’m trying to figure out how to invest my money instead of blowing like most of the guys. I just need helping figuring everything out.
@@jeremyholland4527 start by looking in your area, I retired from the military after 20 years and invested heavily in Vegas before the market tanked ten years ago. numbers don't lie check what are rents and what are the expenses. for a first time investor the comfort of the property being close to you is immense. and always get a property manager don't cheap out on that
Great info. Currently have 7 singles & a duplex looking to diversify the portfolio with 4 unit properties
How the hell do you find and buy these things? Do any multi family homes exist near Northern VA? And any areas that aren’t super ghetto? Lol
Hey Chandler! New Subscriber... Just bought my new first home. I am looking into buying my first investment property now. I dont have much saved since i just got my new home. I was thinking about buying a condo 1-2 bedroom. In Nevada they can go for 60k. What do you think of that as a first investment property? It seems low risk because the mortgage would be around 500 with HOA fees. If i cant find a tenant. i feel like i can just pay for it myself. All these other options you mentioned require more money that i dont have now. Thoughts?
Do it!!!!
I’m doing really well by buying three level townhomes, and turning the basement into a separate unit from the top two levels. All I need to buy is a $600 French doors for the basement exterior walkout, and I put a lock on the door leading to basement so that the top-2-floor tenants can prevent basement person from coming upstairs. My basements rent for $1050 and my top levels rent for $1700, that’s $2750 and my mortgage/HOA/taxes/insurance is like $1400. That’s $1350 cashflow baby (ok, after repairs, like $950 cashflow but still!)
And I’m my own landlord… hiring property managers is whack. They rent to total gang members just bcuz they “don’t wanna discriminate” and then the thugs destroy your property and the property manager will act like there’s nothing they could do and they’ll act like you’re racist for even complaining they just destroyed your home lol. F that. Manage your own properties
Do you usually do prefurnished apartments or do your renters furnish everything?
Taylor Barnes definitely have them furnish it!
Some even their own refrigerators, because they will tc of it better if it’s personally owned
Great video. I like single family and multi family 4 units. One day I'll scale to the apartments.
Hi, what is your average roi? regards!
1.25 speed
That’s fair 🤷🏻♂️😜
Great video Chandler. Do you search for out-of-state properties?
Not yet 😉
This was absolutely excellent! Thank you.
Jesse Lane glad to help! Thank you for watching
You’re a godsend
So discussing those 10 loans before you have to get business loans, is that the max forever or if you pay one off does that mean you can get another one?
EdensGardenShed if it’s paid off or refinanced into a business loan instead of a personal loan you can get more.
What are the books behind you? I see tribe of mentors.
Yep, all my favorites
Releasiticslly how much is needed to start in RE investing ?
Chandler David Smith how can I get in contact with you ?
Let’s link up on Instagram
My first real estate investment was a two family on land contract from sellers that were longtime friends of my parents. Great deal: good terms and a down payment of 2K.
My second investment property was a single family purchased on land contract from a busines associate. Great deal: good terms and 2K down payment.
Land contracts are owner financing that allows you to buy a property with a loan from a financial institution. But first read about land contract pros and cons.And hire your own real estate attorney to either draft the contract or to review the contract drafted by the seller (or their attorney) BEFORE signing it. Then, make sure that the contract is registered at the county's Register of Deeds office in which property is located. This registers you as the new owner and prevents the seller from taking out a loan on the property. I have had only good experiences with land contract purchases. For one thing. I didn't buy from investment companies but rather individuals who wanted to help me. There were times that I had income disruptions, I explained my circumstances to the sellers and they were willing to give me time to get caught up on payments. I doubt a bank leader would have done that or a investment company. (I probably would have loss the properties). So, look for individuals who might want to sell their rentals to you on land contract. It's a way for you to start investing in real estate with affordable down payment and good terms. Keep in mind, you and your attorney should negotiate the terms most favorable for you the buyer.
Give it a shot! Let me know how it goes. Look me up on TH-cam. Also, IG: lvwest1000
Twitter: @LaShandaWest
LV Teach Me money advice! Thanks for sharing. It’s the way to go, but takes a bit more cajones.
I house hack with my 1st duplex that I purchased. Helps me save a ton of money so I can invest another properties. Right now I'm looking to invest in single family homes around the $50k price point so I can buy as many as I possibly can. Good information and good advice to consider still think im a long way off from larger multi family properties like 5 units plus or apartment buildings. But one day. Check out my TH-cam channel for videos on how I am house hacking in the Seattle area which is no easy market to make gains in.
Millennial Mike sounds great!!
WHY AM I NOT GETTING NOTIFICATIONS FROM TH-cam. ARGGGH
Zachary Laid Finding Freedom 🥰😍😘
Thank you for your education. Very detailed. I took lots of notes. I never heard of ways to buy more than 4 plex. Apartments are another section
I want to know what you pay in taxes, I live in jersey and I just cannot imagine how ppl make money while paying 6-10k per year in taxes
Just have to make sure the numbers work
40k in taxes
Charge more rent to recoup taxes.
I Recently Purchased My First Two Unit Multi-Unit Property In Chicago; I Purchased The Property For Below Market Value. The Neighborhood Is Red Hot. The Property Needs TLC, But After Watching This Video I Must Admit I Am Excited.
Solid advice but you stretched this video out for too long…
Hey isnt the mortage more with a duplex triplex etc?
The more the property costs the more the mortgage is but that doesn’t matter if it’s making you more money. If your mortgage goes from 500 to 1000 and rental Income goes from 1000 to 2000 than I’d take the higher mortgage all day.
Check out "the fruitful investor" on youtube
This was so insightful, thank you for sharing! Would you say you could get a good return on a 4 bedroom townhouse as a 4 plex? It’s difficult to find 4 plexes in my area
Multifamily is the best.
Yes!!
Nop
Great video Chandler! I think it's multi family units for me 🔥
Ashley Saldanha thanks so much!!
Ashley ! What’s a good book for learning multi family ?
If one qualifies for a first time home buyer, a FHA loan is 3.5%. I'm looking to get into a four plex as my first home and rent out the other units. But its hard to find in my area. I'll keep on looking!
Go get it! Good luck!
What's your area?
Making it impossible to live anywhere.....a lot of over priced bullshit
Wait a second... did he say 10 properties? I thought you can only buy 4 properties before you go into business loans?
Yep, find the right loan officer and they can help you get ten!
Rule of 4 is just an overlay that a lot of banks have. Lenders with no overlays will approve up to 10 mortgages. I'm currently a mortgage broker but use to work with the big banks so I'm familiar with both worlds
4 Plex is more for a FHA loan I think
How can I get a single family apartment in northern California here sir
What do you mean? Just do it!
Its depends on your ROI on each
My main goal is to house hack and not pay rent, any money above that would just be a bonus. Which type of investment do you think is better? I was thinking a quad but am not sure as I am very new to this
What do you think about one title company not wanting to insure the house but another title company will insure the house... what do you recommend me ? Should I get or nah?
Wait 10 properties is the cap for FHA/conventional loan?
SNAFU yes, you can’t have more than 10 personal loans on property.
@@ChandlerDavidSmith really my lender told me it was 6 mortgages max
howo357 find a new lender!
At the same time or total in lifeitme?
William G same time
Yes hiring a property manager is all good but what people fail to understand is when you are first starting out the management company is going to take all of your income so u are left with nothing I advice having more then one apartment building then go out and get a management company
Im not here to pick one over the other, but mobile home parks in this day n age are prettt solid. Thats our next move. Just lots tho. Leave the mh maintenance for someone else
You're here for @3:45
You're welcome
Thank you ! Liked and Subscribed ! Love the clarity
If you see this comment. I wondered what was your way of getting around the 4 lain per person barrier? I am reading books and watching videos to learn and want to know your method. Thanks
I’m not sure I understand your question
Chandler David Smith sorry for the misspell. I meant the limit on loans one can get from the bank. How did you manage not hitting a wall with so many properties? Bc one is commercial I know it’s category is different but what of the rest? Thank you
Carlos Weaver if you do things correctly you can get 10 personal loans with 30 year fixed terms. After ten then you have to do all commercial loans with worse terms. You can do as many commercial loans as you want
Chandler David Smith thanks for the heads up. I thought it was 4, 10 duplex, triplex or 4plexes make the goal much easier. I’ll look into what those steps are. Thank you for your help subscribing now. 😁
Hello Mr. Smith I have a question. I am still a college student who has no real estate investing experiences but has an interest in it. I would first like to know is there any books you would recommend for beginners? Then how do I start as a college student?
"can pick up at 50k" as I'm about sign on my first property at 500k 😂
Hes a genius , i have been able to build a good income by trading during the Pandemic till date with the Help of an expert advisor i met in a Tesla conference where Elon was present
Who is this advisor ?
I am a Nurse I started using a financial advisor last year, my total portfolio then was worth around $12K and is now currently over $72k with the latest Tesla bull and other trading assets
If you put down 3.5 on fha you will have to pay for mortgage insurance premium until 80 % LTV reaches
Jorge Burrito ya, still worth it!
I don’t like the mortgage insurance 😥
Jorge Burrito if the property still cash flows (heck even if it doesn’t), and the deal is good where you have someone else paying for your property, maybe even instant equity because you purchased it below market value, then who cares about mortgage insurance?
The tenant is literately paying that, not you.
Plus you can refinance out of that insurance in a couple of years if you want.
For me, I’m not letting that stop me for purchasing good deals. I want in. I want my money working for me. I want to eventually use the wealth generated to help others. Don’t like a couple of percentage points stop you from getting a good deal
Just make sure it’s a good deal
Not really. Lots of lenders waive that nowadays.
I don't know what multi-family house is. Can you explain please?
Hey Chandler 8:20 exact same thoughts. I am trying to get into a 4 plex, and I am wondering if you have advice on how to get a loan? I was just laid off for covid. Can i put a higher DP or maybe i need a cosign?
How would this work in Florida
wallace derouchie the same way
I’d never put anything under 20% down.
Jacob Pair why?
Chandler David Smith it’s just my opinion not really a deal breaker but because I don’t wanna cut it close as to putting down 3% , don’t want the debt and To be close to the cash flow I’d you know what I mean. More money down cheaper payment but too little money cuts it to close to the what your cash flowing. That’s just me though, do you have a limit on what you put down on a deal?
Jacob Pair totally understand where you are coming from but it depends on the deal. Some deals with 0 down can still have huge cash flow. As long as the cash flow is strong enough, the lower down the better!
Chandler David Smith I agree.
Where do you find that?!
0 down?
Sounds like owner financed or ??
So glad the TH-cam algorithm brought me to you.
Great video thank you
I have a question do you know a video or spreadsheet or formula where I can compare numbers of some properties so I can practice what is a good deal and how to recognize one
Any book would help to If you dont mind recommending it
Thank you
Very well explained. I am loving your content!
Caleb Olsen Thanks man!
Hey Chandler. Quick question about cashflow and adjustments you can make down the road (after year 1). If a given deal financing has terms and an low interest rate (
Demetrios Mustakas Jr. I need to do a video on this!
I can’t wait to work with you. I would be interested in doing some deals with you and growing. I’ll DM you my number later we should do lunch or something.
Thank you for sharing your experience and advice
What if someone want to get into real estate that have no job or no money ? Such as me I'm thinking about being a landlord.
Get a credit card & start there.
Thanks for the video🙏 what do you think about hotel units?
Thanks! If you know what you are doing I think they are a great option! Definitely more effected by a downturn though
Hey what’s the best way to find an excellent realtor and a loan officer ?
Mosiah Martinez new video on this coming soon!
I love your information, where have you been?
Haha thank you! Been on TH-cam for a while! Check out my other stuff!
I want to start with MultiFamilies, and after 10 properties, get into the big dog apartment deals
Chandler David Smith as big as possible man! Long term true wealth I believe is in Real estate not cash. Want to be making as much passive income from cash flow producing properties. That is true financial freedom
Zachary Laid Finding Freedom love this!!
I swear I read somewhere that after 4 properties, you have to go commercial. Is if 4 or is it that a multifamily can only have 4 units if it’s going to be a private loan?
If I have a duplex, any advise on how to decide whether to make it a fourplex?
Great video Chandler, I just have a question that, did you form the LLC or some sort of similarity at the very beginning when you started investing in real estate? Thank you!
Ethan Ngo Thanks for watching! That is a great question. I have one LLC for about every 10 doors. If you’re getting a personal loan on properties so that you can get a load down and fixed interest rate for 30 years you will need to purchase the property under your name and then quit claim it over to the LLC.
Thank you for your reply Chandler! I really love what you did and it is really inspired me. So you what you was financing the property under your personal name, then quitted claim then put it under your LLC? Were there any difficulties when dealing with lenders when you did that? I thought that you should have formed the LLC first, then used the LLC to purchase those properties! By the way, may I have your email? I just have few more questions and I think you are the best to give me those answer! Thank you!
@@ethanngo1307 you register LLC with a real estate attorney and personal guarantee your loan docs. It's easier, but quit claim is cheap and it's a second option.
The best investment is the best deal you can get
Thank you Chandler! Seems like #VEE2018 was yesterday when I first met you. Love your videos and Instagram. Keep it up buddy.
Noel Bissoondial thanks so much! Let’s connect soon!!
Thank you for providing excellent value!
thank you for watching!
loved this video,i was asking myself the same question and have decided multi family is the way to go
So who cuts your hair? Lol nice line up
Single family puts you in the game ASAP!
A 4 unit and live in one unit seems best.
What type of sales job do you have? Love over the phone sales
Great teacher.
LV Teach Me thanks!!
👍👍🌹🌹
Did you start out with single family homes? And how many properties did you have at the time when you decided you needed to hire a property management company?
Yes, with a condo. Managed it for a couple months and then made the switch. I always wanted an investment, not another job.
great video, good info but man you speak slowly. i have to listen at 1.75%
Nick Wisda that’s fair haha I train salesman all day to slow down to this speed so it’s hard to speed up for youtube! Thanks for watching!
@@ChandlerDavidSmith absolutely. more videos please! :)
Nick Wisda will do! Thanks for watching and commenting!
He speaks at a perfect rate. Keep in mind, most listeners are novice and it takes a bit longer for all new info to sink in. I find that many of the entrepreneurs online speak way too fast in the videos. I believe their passion for the work takes over. It's good to be passionate about a subject but if your purpose is to teach others, you have to keep in mind what best for your audience.
@@ChandlerDavidSmith You spoke at a perfect rate! So no need to make adjustments. Knowing your audience is important. Most viewers are novice so it takes longer for us to grasp the information. When TH-camr talk fast, it's frustrating because it's not the best way to teach their audience of newbies.
Thank you!
Gilbert Mana no, thank you!! 😜
Thank you for the info .your the best
Why are you limited to 10?
They never tell you it very hard to liquidate Apartments it very easy to liquidate Single-family homes that’s the key 🔑 liquidations
Davon Thompson not completely true. Maybe a little more time but not hard
One Day I'll buy my first multi family investment and I will reference this video as how I started my research! :)
Hes a genius , i have been able to build a good income by trading during the Pandemic till date with the Help of an expert advisor i met in a Tesla conference where Elon was present
Who is this advisor ?
I am a Nurse I started using a financial advisor last year, my total portfolio then was worth around $12K and is now currently over $72k with the latest Tesla bull and other trading assets
We should be an handyman or 🚺 too 😂😂😂
You can’t use FHA to buy a single family home investment. You’re required to make it your primary residence.
just have to live in it for a year but you can house hack by renting the other rooms while you live there
Yeah you can house hack. You can live in the basement (if there is one) and rent out the rest of the house.
And even if you don’t do that, the equity built in the house can help you purchase another house 2 years later, then rent out the first one. Repeat that process and in 10 years you have 5 houses (at least)
Multi Family is my favorite as well!
Zachary Laid Finding Freedom let’s gooo!
where can you buy a house for $50k???
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