1st Investment: Larger Multi vs. Duplex/Tri/Quad...

[Andrew Ginsburg]

Hello BiggerPockets community,

As a newbie, I have been playing spectator for a few weeks while soaking in all of the knowledge and experiences shared on the site. I've had three years of experience in Real Estate Sales on both the high end residential and commercial side leading into 2008 when I got married and began working in the beer business.

Anyway, I wanted to ask the experts here what the advantages are of starting my REI career with a smaller multi vs a large multi? Access to funds is not the issue for me as I have substantial equity in my home, built up my 401(k) and have access to private money. Is there really a much bigger demand with a few more units? Are mistakes more costly? Is it a mistake to get my feet wet with a larger property?

I apologize if this topic was already covered in a previous thread, but I would appreciate any feedback from the community. Also, I am sure that I am missing some information that will be necessary for some answers, so please let me know.

Thank you in advance for your feedback!

[Kyle Gregg]

I think with smaller multi families (2-4 units), you'll get a feel for how everything works on a much smaller scale. You'll know how to screen tenants, manage a property, deal with tenants and maintenance issues, and build a solid network of people that can support you. Starting small would allow you to learn along the way, learn from your mistakes, and become a well rounded investor. Starting large with no knowledge, background, support network, skills, aptitude for understanding tenants, etc...could get you into a place where you're WAY over your head and hemorrhaging money....but what the heck do I know...

Good luck!