First time multi fam investor need opinions

[Tony C.]

Hey fellas, I’m new to the multi family investing I’ve always wanted to get into it  although never wanted to do it alone. Recently sold my house now have a place to live rent free so no rush, but I’m looking to purchase a multi 2 or 3 family with 3.5% down. With 3.5 % down I’m not finding any cash flow houses and barely finding anything that pays for itself. I’m not looking to invest outside of the New Jersey New York area I live in even though I know those are options. If anyone here can point me in the direction for things I should know going in it would be much appreciated. Just to fill you in I’m looking long term I don’t need the house to produce a return right away however I’m not looking for a burden that drains my pocket eithier. What do you guys think is acceptable it’s the New York nj market so it’s hard to find any house that will cash flow with 3.5% down initially thanks in advance to anyone who chimes in and remember I’m just starting out

[Benjamin Aaker]

Hi Tony and welcome to BP. You have the right idea looking for multifamily. Houses are overvalued right now and cash flowing them as rentals is very difficult unless there are a lot of repairs to make. Much better to find a 4 plex. With these, you can still get an FHA loan if you intend to live in one unit. 4 plex because you'll have the best economy of scale. 4 plexes aren't near as sought-after as single familys so their price hasn't gone up as much (though they still are expensive). Make sure you run the numbers as a rental first. You will likely find one that works in your area.