Choosing the right residential property type

By Paolo July 28, 2020 Real Estate Investments 0 Comments

Single Family vs Townhouse vs Apartment

Usually buying a single family home does not bring as much return as buying many smaller properties. Townhomes, condo may bring in more monthly income for the same capital investment, but will increase the work associated with the investment. In other words, having one property bringing in 4000 $/month net operating income is much simpler to manage than four properties bringing in 1000 $ each. (NOI or Net Operating Income is the amount of income that is left after you pay expenses )

There is no such a thing as a perfect investment for everybody. All depends on your budget, on your financial status, on whether you are willing to take care of the property yourself or if you prefer to have a property manager, which would set you back 8% to10% but might give you a realistic possibility to acquire an apartment complex.

A single family? A duplex? a townhouse? a condo? An apartment complex ? does our analysis work with any type of property? The calculation is simple and basically the same for any type of property but in order analyze an apartment complex you would need to be proficient with Excel or use one of the many programs that can calculate the returns for you

The calculation is simple: all we need is a calculator or, better financial calculator ( I use 10bii app) or Excel for more complex scenarios where I have to include financing and rehab costs.