Starting in commercial real estate

[L. Brown]

Hey BP,

I currently own a duplex that I occupy. I’ve had the property for 1 1/2 years and all in all, it’s gone extremely well. As I think about my next move, I’d ultimately like to prepare to buy a small apartment complex (no more than 10 units) that would cash flow enough for me to pay the mortgage on my (yet to be purchased) single family dream home (not extravagant, but really nice).

Here’s my question: what are some of the major differences between buying and managing a duplex vs an apartment complex (I would hire a property manager)? Is going from a duplex to an apartment complex too big of a jump? Would getting something smaller (ie. 4-plex) be a better move to get my feet wet into commercial property? Thanks!