Second Home or Multi-Unit to rent out?
I have friends who are getting second mortgages to buy second homes to rent out. I've told them they'd be better off buying a four-plex or similar multi-unit property. Can anyone give good reasons for either choice?
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Getting a second mortgage would be cheaper than getting financing on investment real estate sometimes.
But getting a four-plex is better for success. The reason behind this is because even if half of your places are vacant, you still have income coming in on the other units.