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Updated 12 months ago on . Most recent reply
![Justin Goodin's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/1147224/1704153801-avatar-justing170.jpg?twic=v1/output=image/crop=231x231@175x29/cover=128x128&v=2)
Did you start with single family rentals ?
Here’s why many investors switch to commercial multifamily 👇
Let's say your rental property makes $200/month in cashflow.
Which is $2,400 annually.
This will WIPE OUT your cash flow:
❌ HVAC repairs
❌ Turnover costs
❌ Roof Repairs
Not to mention, you will most likely need 20% down to buy a rental.
$200K is a starter home these days.
→ How many rentals could you buy each year?
→ How many rentals would it take to replace your W2 income?
This is why many investors switch to multifamily investing.
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![Robert Rixer's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/358633/1706639170-avatar-aussierob.jpg?twic=v1/output=image/crop=640x640@0x0/cover=128x128&v=2)
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Disagree with this, you still have HVAC, turnover and roof repairs in multifamily which could just as easily wipe out your cash flow. The difference is the volatility of owning multiple units versus a single house is usually a lot lower. Definitely more scalable buying multifamily.