few of the Pros and Cons of Multi Family Units...

haha, MFU complex has its goods and bads, I usually don't recommend beginner jump in a big complex without any prior experiences, one should start with SFH in decent condition, I personally did not own any MFUs till I had over 20+ SFHs, but to reach a greater scale, eventually you have to look into commercial MFUs..

here are few of the pros and cons I can think of..

Pros
1. cash flow can be very good compare to SFH, due to lower per unit cost.
2. per door maintenance is much less since they all in one location.
3. centralized office means less traveling for you or handy man.
4. Insurance cost also cheaper compare to SFH.
5. similar floor plan, similar setup, easier to manage.

Cons.
1. Higher vacancy rate due to centralized location, aka, neighbors.
2. higher cost of leverage, shorter term loan.
3. commercial loan is harder to get, or maybe near almost impossible.
4. lower quality tenants, more younger generations.
5. owner usually has to pay basic utilities as water, sewer, and trash pickup.

所有跟帖： 

• 学习! -1年又1年- ♀ (0 bytes) () 09/25/2010 postreply 19:22:52

• 谢谢JY的经验总结,　我们先向 -黎明新生- ♀ (123 bytes) () 09/25/2010 postreply 21:13:51

• good to know, thanks. -SunshineInCA- ♀ (0 bytes) () 09/25/2010 postreply 22:05:22

• Good post. People need to have a open mind. -cultuslake- ♂ (0 bytes) () 09/25/2010 postreply 22:09:12

• JY兄的总结归纳很到位，我有几点补充看法： -如山- ♂ (609 bytes) () 09/25/2010 postreply 22:45:33

• 到底是前辈，给新地主指明方向. -黎明新生- ♀ (34 bytes) () 09/26/2010 postreply 00:14:14

• 同意，有些地方，SFH as investment, 没有cash flow -铁华- ♂ (145 bytes) () 09/26/2010 postreply 09:05:07