What is the best residential property investment right now?

**Waterfront Specialist** · 10-06-2010, 10:45 PM

If an investor wants to buy residential property right now should they opt for private houses condominiums or multifamily? Each one has a good news/bad news list of characteristics. Which is best for the investor depends on finances, emotional preferences, and time. Following are summaries of the advantages and disadvantages of each.
From a management perspective, as a general rule, unless you own a total of ten private homes and/or condominiums, the economics don’t work for hiring a management company. For multihousing, fifteen units is the threshold for hiring outside management. Managing on your own real estate means collecting rents, keeping books, taking calls in the middle of the night and leasing on the weekends. There is nothing wrong with this approach, except that you need the skill, temperament and time to do it.
From an economic perspective, when a condominium or private home is occupied, it is 100% occupied. Conversely, when either is vacant, they are 100% vacant. Condominiums have covenants, conditions and restrictions (CC&Rs) which govern the community. The condominium owners elect directors to manage and oversee the property. The directors’ skills and abilities will reflect on the condominium’s value. Lawsuits can arise that will affect the value of the condominium. Multihousing offers a diversified source of revenue and has less of the financial complications presented by private housing and condominiums.
Whichever you buy, it has to start with cash flow and grow from there. In the final analysis, that’s what is going to determine value.

**davidhd** · 10-08-2010, 06:09 AM

It depends upon our expectations?
Some wants home away from city, some in the city.
Some wants a pool in the house, some not.
Some wants enjoyment, some want return on investment
So, this is a variable.

**francinebourne** · 10-13-2010, 09:19 PM

Originally Posted by davidhd

It depends upon our expectations?
Some wants home away from city, some in the city.
Some wants a pool in the house, some not.
Some wants enjoyment, some want return on investment
So, this is a variable.

I agree with Davidhd said, Like me i want residential property to invest for the future.Since i have a child now i want to live in a city.

**Palazo** · 10-21-2010, 03:26 AM

Originally Posted by davidhd

It depends upon our expectations?
Some wants home away from city, some in the city.
Some wants a pool in the house, some not.
Some wants enjoyment, some want return on investment
So, this is a variable.

I agree with Davidhd because most of the people have different type of thinking on residential home

**Jonathan Radford** · 10-22-2010, 02:26 PM

It also depends on what your goals are - are you an investor or an owner. If you're going to own and live in it then it matters a lot less about financial matters. You're the one who's going to be enjoying it.

Remember too that each deal is different. You might get a great deal on a condo in one place but a great deal on a 2 family somewhere else. Work the numbers.

**laura.alamery** · 10-22-2010, 06:29 PM

My experience has been that multifamilies are the way to go as a landlord, meaning smaller building with up to 4 units or condos. Like you said, with a house you have 100% vacancy or occupancy. However I also would have to say that tenants tend to stay longer in single families -- more of a private ownership feeling. I have had houses with tenants staying 5 years or longer, while multi-families, with some exceptions of course, have more transient tenants.
A mix of both (single family and multi family) would be ideal, with more multi than single. This is what I usually suggest and I have seen people creating amazing real estate portfolios this way: I know this particular investor in St Louis who has started purchasing properties in the '80s and by 2000 he owned over 200 properties, all of them either single family or up to 4 units. He started liquidating a few a year in 2000 --- he did a 1031 exchange on some of them for a beautiful retirement home on the lake. He had everything mapped out and it worked!

**The Superpreneur** · 11-03-2010, 09:18 PM

To answer a question like this one, I feel its most important to consider your long term goals... "Begin with the end in mind"

-What is your long term objective?
-Are you building a "buy & hold" portfolio or are you focused on short-term profits from a flip, for example?
-Does the property cashflow?
-Are you going to manage yourself or hire a third party?

Too many "investors" jump in without having a clear vision of their goals, they often get in quick, move from one "deal" to the next and soon find themselves flailing in a sea of bewilderment having never mastered one strategy or another. I hate to be cliche, but failing to plan is planning to fail.

Single family vs multi family is much more a question of your end goal as opposed to one of immediate market conditions and profitability.

**BeccaLacey** · 11-08-2010, 10:47 PM

Property, it is perhaps the best way you can invest your hard earned money. And earn more money by Real Estate. I truly to appreciate you taking the time share this.

**REGroupCA** · 01-03-2011, 02:18 AM

In my opinion Ottawa is the best residentail area to invest right now. If you live in apartments in Ottawa especially in Westboro or Nepean area, you will be pleased to know that these districts are full of activity shopping street with many opportunities. In addition to the many small independent shops (including several outdoor sports shops), there are many huge shopping centers in the area, including Bayshore Shopping Center. A three-level mall with more than 150 shops and services, it is preferably located along the highway 417th you can also visit Carling Wood Shopping Center, more than 125 shops and services with ample of free parking.

**Laurence.mex** · 01-07-2011, 05:26 PM

Everyone has there own opinion and expertese. Many times you can find a larger property management company which will take on one or two of your properties for a very reasonable price. Ask local realtors and investors.