Advice on best way to start in multi-family with limited capital

[Zachary Taylor]

Hey guys,

I was wondering if anyone out there had some tips on how I should go about beginning my investment career in multi-family. I’m looking to purchase a property with at least two units but willing to go for a triplex or fourplex if financials allow. I’m currently working full time but my career allows for a lot of time during the day to educate myself on real estate investing. Have about 15k saved currently but can roughly add 3 - 4k a month to that. Found a couple c-class 2 unit properties close to my area for around 180k. Both properties have tenants. Should I wait until I’m able to cover 20% down? Try to find something cheaper without tenants that I can put sweat equity in then rent out? Or go for a type of creative financing? Ultimately I’m trying to create a good plan to scale rapidly without much upfront capital in order to achieve more freedom with my family.

Thank you!

[Robert Finn]

Conventional owner occupied financing may be the best strategy to scaling with little money down. With your W2, you may qualify for a larger purchase price in a >B areas. A live in flip on a 2-4 unit will add value over the course of occupying. Once complete, you may be able attain higher rents, provide that to your lender as rental income, then transition into another small multifamily deal repeating the process.