4 unit property for first investment?

[Richard Hodges]

I've found a 4 unit property for sale in my price range which also has a store front as well with a current long term tenant. This would be my first investment property. should I go for it or should I start with something smaller?

Fully rented, the property would generate roughly $2300 a month and my mortgage would only be $900.

[Adam Fout]

My first investment was a fourplex and I had zero prior experience investing in real estate or managing properties. I did spend over a year educating myself primarily through books and BP. I inherited 3 tenants and the vacant unit was left a mess. I spent a couple weeks cleaning it up with new carpet and paint and I had it rented in 2 weeks over the Holidays. What was great is I was still cash flow positive with the 3rd unit vacant. This is the benefit of multi family properties.

I would absolutely recommend starting with a fourplex. If you are inheriting tenants, the initial transition can be difficult and require quite a bit of time up front. But once you get through that and properly retrain your tenants, it can be fairly hands-off.

Many will recommend staring small and easing into REI. I chose to jump right into a larger unit and do not regret it. Yes it was a bit hectic at first, but there is no better way to learn than actually doing it. Do your due diligence, make sure the numbers are good, draft a solid lease, train your tenants and screen new tenants thoroughly.

I also recommend getting an inspection on the property and find an inspector who is willing to do a fourplex, it may be a bit more expensive thanks a single family, but I have found it is worth it!