Purchasing second real estate for cash flow investment

[Kevin Lee]

 My wife and I currently owns a single family home that can sell for 80% above the price we bought it for. It is getting old and I feel renting it would cost to much money to repair. I wanted to buy a quadruplex and rent out each unit. I’m not sure where to start as far as if I should sell this house, invest in the multi family home and live there or should I just invest in one, rent out all rooms and move in to a new house? I am new at investing in real estate and currently do not have any rental properties. I only own a single family house. 

[Prestin Sokoloski]

@Kevin Lee, I would ask if the 80% equity in your own home would cover the cost to acquire the Quadruplex? If that is the case and you are happy in your home you may consider refinancing your home. This would give you cash to buy the 4 unit. Then if the numbers work with your higher monthly payment on the house as well as the 4 unit mortgage, problem solved. On the flip side if you decide to sell and move instead you'll have to see if you can swing a down payment for both your new home and the rental property.