town home versus single family versus a condo which one is better to buy as an investment folks
today we're gonna answer this question and believe me when i say this there is going to
be a winner in the end so if that's what you're looking for stick around for more
namaste to all my friends all over the world welcome to my new setup
without further ado i want to discuss which investment property is best for you condo townhome
or single family in this video i'm going to simplify this concept i have prepared a wonderful
wonderful chart for you guys which breaks down each category and each types of house or homes
that you could buy and what are the pros and cons like appreciation like price to buy or cost to buy
and tenants and so on so forth there's pros and cons for everything folks so so before i start to
get into the graphs and charts of which properties better to buy i want to give you two things which
is the strategy behind this before i even discuss you know how to implement that strategy so let's
start with that there are two types of strategies so there's flipping as then you fix a house you
rehab and you sell and the number two strategy is cash flow which means you fix the house maybe add
some rooms or what have you but then you keep the house long term so you can get monthly cash flow
so let's look at the chart on the screen okay what do you see on the left hand i have cash
flow which as i talked about monthly income on the right i have flipping so
cash flow is a long-term game okay you won't get immediate money right away you wouldn't feel
rich you won't feel like there's a lot of money in the bank okay that's cash flow
but philippine is short-term investment which means you will get cash right away you fix a
property you started a couple of months later you get some cash cash flow has monthly income
flipping quick money in your pocket you're paying lower taxes with cash flow aha here's where cash
flow gets interesting you're paying less taxes up to zero taxes in some cases for cash flow
in flipping you're paying very high taxes very high taxes and there are ways around that folks
i have a service for taxation as well if you like you can check it out entrepreneur extraordinaire
dot com and you will see my tax services i can help you in any kind of situation one way or the
other possible tenant issues in cash flow you have a tenant you're catering to a tenant you have a
property you have a tenant living in there they're giving you monthly income they may not pay rent on
time okay the property may be vacant a few months a year and vice versa so keep that in mind for
cash flow purposes flipping no tenants involved no problem however if it takes too long for you
to flip the property the market may go up and down the market may crash while you're rehabbing the
property you're in trouble so there's some pros and cons cash flow also has long term appreciation
you know over time over time right there's cash flow appreciation while you're flipping there's
minimal to no appreciation in the property okay because properties don't appreciate every single
month so you're with me so far okay so now you know two strategies cash flow and flipping
there's more strategies but we're gonna use these two strategies as a contact so now look at
a chart that shows town home condo single family and how do we actually buy one of them if you're
a beginner and you don't have much cash in your pocket flipping may be the only way to go flipping
wholesaling subject to are some techniques which don't require much money to invest you can borrow
money even hard money you can invest and get some money if you have a lot of funds you know
50 grand 80 grand more you could definitely do the other strategy which is cash flow i am
leaning more and more towards cash flow because i don't want to be flipping properties every day but
however there is a but okay somebody recently called me sold me a property and i ran the number
and i said wait a minute ding ding 100k for three months of work boom sign me up so i bought
that property so there may be opportunities for flipping that you don't want to miss by the way
press a like and subscribe button if you enjoy the content if you see value but if you see the
honesty behind this research i put together this graph myself this doesn't exist on the internet
so hopefully you'll enjoy this okay so let's look at the chart okay so let's look at the beautiful
chart i put together which shows you single family townhome and condo side by side rule number one is
affordability well guess what single family is low affordability not many people can afford single
family houses so how you gonna flip it right town homes high affordability condos high affordability
cash needed high for single family need a lot of cash to be able to afford a single
family house you don't need a lot of cash for town homes you need even low for condos
appreciation what happens to appreciation right well single family high to medium town home medium
not as high single family still pretty high condos low appreciation okay hoas low for single family
medium for town home condos high taxes single family very high okay ding ding big no for me i
don't do high taxes you know me town hall medium taxes condo low taxes low to medium i would say
profit same same same land value high medium no value for condo restrictions
low restrictions on single family low restrictions on hoa but high on condos on condos you can't even
change the paint and color well you can change the color but you know you know what i mean like it's
hard to change things because you're in a building and someone else owns the building maintenance
completely separate everything is your responsibility most of it right
for single family for townhome it could be shared condo all of it is hoa okay you don't maintain
anything it's all of his hoa vacancy rate that's where it gets interesting folks vacancy rate means
there's high vacancy rate for single family why is that high profit but high vacancy and high
taxes why is that because not everybody can afford single family folks when you move away from mass
population you have less and less affordability okay not many people can afford single family so
what happens not many people can also rent it so where do people move then they move to town
home and condos okay a lot of people don't like condos because they have high joy fees
so given that what is the clear winner here folks the clear winner is in the center it's the town
hall that's where the bread and butter is town homes row homes anything that's two three bedrooms
two bathroom is a perfect setting folks and condos are a pain because the hoa feast just keeps going
higher and higher and higher i can tell you how many condos i own i cry every night thinking
how can i dump these condos they cost so much money every single month and there's all these
hoa stipulations like you have to do dry vent cleaning you have to do this hvac cleaning uh blah
blah blah blah blah i mean it's just nightmare they can put anything whatever the community
says in the hoa and then you have to comply with it folks i was just in canada i had a wonderful
wonderful trip i can't tell you i saw family i saw people and friends that i've known for many many
years and it's a beautiful city folks if you had a chance to visit toronto please go and visit that
one of the videos that i did with my friend amershak there who's an expert in real estate
in toronto i'll put the link here you can check it out but a wonderful wonderful setting
and if you guys think the price is in this market is higher folks you have to check out
toronto toronto is even higher double triple the prices of u.s so it's pretty crazy how the
prices are there so i think the market is still in in at least in the dc virginia area will stay
strong when it comes to housing unless unless the feds start to increase interest rates then it may
may correct itself by the way press like and subscribe if you enjoy my content if you enjoy
the chart that i put together that's going to make this chart is so easy focus it's going to make it
so easy for you you know to make a decision based on this chart which one do you really want you
don't have to listen to my advice you may even not like town home that's fine go with condo go
with single family try different things see what you like because part of the fun and games and
investing is learning it's falling down and then getting up and then figuring out oh wait a minute
mr aka was saying you know invest in townhomes but in my area all these small single family ramblers
are doing really well maybe i should make money off of that there's no right and wrong here and
here's what i think i stay in the center folks i want to cater to mass population where most people
can buy my properties and because the more people can afford a property the more people will buy it
the more people will rent it and that's where townhomes come in okay because the
profit is still pretty high comparable to single family now let's look at one more chart you know
the the appreciation of these properties in general now i'm giving you extra information folks
so appreciation versus reality let's look at a chart here you can see that in the first second
third year properties people think appreciate 30 but they really don't they go as high as 20
in three to seven years okay that's the max it has been stored now in seven to ten years people
think their property will go up as as high as i don't know 37 or whatever but actually
in 10 years a property gets property increases in value much much higher than that up to 40
so another stat i want to share with you guys look at this graph in chart okay of the areas where by
2030 the prices will be highest so if you live in any of these areas i would suggest you either move
somewhere else or buy investment property there because it's about to appreciate and these areas
are state of washington oregon idaho nevada utah obviously nevada's close to california and arizona
a lot of people are moving from california to arizona as i mentioned in my in my video called
the great resignation folks so i hope you guys find this useful because i took some time to put
this together everything is here folks you look at this chart and you guys drop a comment and tell me
which property type do you think is the best for you with that i'll close my video thank you so
i don't much for seven hundred users now or subscribers uh which are watching my channel
uh lots of comments the last video i think cross uh twelve thousand views just in a week
uh wow i would have never never thought i would ever get there folks but thank you
so much for all my friends who've been helping me through this i do want to make a big announcement
folks uh some of you may know that my dad passed away a few months ago and uh i've decided that
whatever monetization i have from this youtube channel part of it 50 or so or more should go to
a charity but it will most likely go to the causes of children welfare okay children child abuse
foster care because i have built a system for that very close to it i saw a lot of child abuse there
and it just breaks my heart that nobody does anything about her um so i will be making a
contribution myself i will also come back in my videos from time to time and report to show you
where the money is going as i mentioned to you guys before that over 90 of my tenants are either
veterans disabled people people with bad credit or single moms and i'm trying to help them folks
that's my that's my motto is is to create affordable housing you can still make a lot
of money i make pretty good amount of money folks every month uh without much effort uh and i still
help people there's nothing wrong you can have both right you can have both this channel again
is strictly for the outsiders you know people who don't have access to information people who
are trying to learn a few things tips and tricks people who come and ask me you know
in a store or somewhere hey man what do you do or they might see a nice car they might ask me
what do you do when i'm i'm happy to tell them and share this information with them because nobody
taught me these things right i had to figure it out i was reading all these silly books um and
and i had to figure this out on my own so i hope you guys don't have to do that youtube is a great
piece of information and with that i'm going to end this video thank you all i hope you like this
new setup there's a barn door here i wish i could show you i want to thank you again for everybody
for every like for every comment if you leave a comment i will personally answer your comment
in any video that you wish uh thank you with that i'll see you all in my next video bye now