Am I wrong to not consider SFH?

[Ron Burgundy]

Hi everyone,

I am a new investor looking to purchase a small 5-10 unit apartment complex. There are not a lot of these available at the moment, so I'm getting very discouraged. 

Some people have asked me why I don't consider SFH? Please correct me if I'm wrong, but I understand there are some disadvantages with that avenue compared to MFH.

1. For SFH, one must continue to hold a full time job in order to qualify for mortgage and qualify for refinance (with a few exceptions). My goal is to eventually quit my day job, so this is not compatible with what I'm trying to do.

2. Very low cash flow per rental house (maybe $400 per house at the most). Not enough to make me interested. 

3. It will take a lot of time to lock down and purchase enough SFH properties to match what one small MFH would cash flow per month.

Please be honest with me. Am I wrong on any of the above? Thank you. 

[Jameson Sullivan]

@Ron Burgundy is that your real name? lol anyways I don't own any multi family yet but that is where I'm lookong towards because of a couple reasons. 1. less vacancy %when one tenant leaves. in a 5 unit your at 20% vacancy versus 100 in sfh. 2. you do need to qualify to receive the loans on multi family as well as single but the requirements begin to change and the lenders begin to look at the building itself and the cash flow it brings in and less at your income. although they will look at your income, net worth and liquid assets to assure you could cover the debt in the event that something went wrong. sounds like you're in a good mindset but you might wanna think about reading some more or taking on a partner if you're going to be jumping straight into a 10 unit mf. best of luck. oh and regarding the financing on investment properties the down payment could vary all the way up to 30 percent depending on the lender and the terms