Multi Family vs SFR in North Iowa

[Matthew Hollister]

I am at a crossroads this year. My situation is I'm 26 I make 45k a year and my wife makes 30k I have 5 SFR I started from nothing and saved and bought 5 rentals in 3 years. I buy them for around 35k do a light rehab (most of the time) for around 4k and they appraise around 50k. I refinance them with a 75% LTV and a 30yr fixed rate. I can do that 10 times for residential. The avg rent is around 625 little to no appreciation but good cash flow. I am thinking of stepping into the multi family this year or should I keep doing these small houses. The multi family up here in north iowa is roughly around a 10 cap I would say for a decent apartment building. Do I jump into multi this year or keep doing the small deals. My goal is around 5-10K per month after expenses right now I'm around 1500.

[Michael P.]

you could use some of your ten mortgages on four plexes if you wanted. ten is really twenty between you and your wife. good job getting started young either way you go you are well on your way to being successful.