I’m planning to buy multiple rentals (1960 built) in LCOL areas (Midwest). I’m also considering buying a SFH (new constructions) in Vancouver, Bellingham or Olympia as an investment property. Purchase price: 500K (SFH) or (3x 160K rentals) Loan: 4% with 20% down. As far as my understanding Rentals give a better cash flow while SFH has higher appreciation over time despite having negative or zero cash flow. Please let me know your thoughts, pros/cons about these options assuming that I prefer holding these properties long term. Edit: Added some numbers for comparison Assumptions: 500K SFH with $2500 rent per month, HOA $50 500K Rentals with $4500 rent, HOA $1000 per month, 8% property management on aggregate TC Family: 500k+ Yoe: 5yrs #personalfinance #investments #realestate
You should factor in cash flow re invested for the rentals
Yes, pour all your money into one investment
LCOL brings just positive cash flow. HCOL brings capital appreciation which is way higher than pocket changes
Do you think there is scope for appreciation in markets like Olympia?
I am from bay area and don't know that area. But in general my statement holds good