Deciding my next endeavor. SFH vs Multi.

[Sean Gallagher]

I'm saving up about 300-400k for a down-payment on a small multifamily 10 unit or so.  My thought process is the multifamily is the way to go but at the same time I could scoop up sfh's all cash, rehab rent and refinance, get all my money out and keep going.  Seems so much more powerful to scale if able to find the deals.  It would take some time to scale up with multifamily if having to gather 300k at a time.  Anyone else think deeply on this?  I only have one single family rental atm. 

[Carl Millsap]

@Sean Gallagher multifamily is the way to go. You don't have to save for the downpayment. 

1. Research syndication....essentially it's raising money to buy a multifamily property. You have investors, you provide a return, you own and operate the property. 

2. A few podcast on multifamily / syndication:

    a. Best Real Estate Investing Advice Ever w/ Joe Fairless

    b. Multifamily Investing w/ Charles Dobens

    c. Real Estate Investing for Cashflow w/ Kevin Bupp

    d. Apartment Building Investing w/ Michael Blank

3. Multifamily operation isn't much different than single family. Benefits far outweigh single family.

   a. Loans can be non-recourse - essentially you don't have to personally guarantee it. Not that you plan to default but its a nice benefit.

b. You're not dependent on one tenant (SFH) to cover your expenses.

    c. You determine the value based on how you operate the property. You can have 2 identical properties next to each other but have a $500k - $700k difference in value.

4. It's not all rainbows and sunshine in multifamily, but neither is SFH investing. Just want to provide balance / relevance.