Multi family (2-4) units. Getting started

[William Silva]

Hello BP, 

I’m writing this post for all the rookies (myself included) I think it will be very helpful for anyone who is getting started. 

I invite seasoned investors to share their experience buying their first 2-4 unit properties. 
here are some questions to base your response/story

1) how did you find your first property ? Was it off-market, or on the mls?

2) if you were getting started today, and take ONE piece of information you know now, what would that be?

3) how did you decide on the specific city you chose to invest in? A lot of rookies will get stuck in analysis paralysis and get overwhelmed on what market to buy in. 

If you have anything else of value to add, please do so!  I thank you in advance for taking your time to provide us with your knowledge 

[Aristotle Kumpis]

My first duplex was a turnkey, off market property. It was nice because it had a new roof and some newer updates. I didn't have to do anything to it. And one side was already leased. I bought that one in Alabama since I already owned SFR's there.

If you are looking for cash flow, I would look at a 4-plex. A duplex is okay, but I am not seeing the cash flow that I wanted. I would recommend you look for a good neighborhood to buy a multi family in. A lot of multi family can be located in not so good areas. Although it may look good on paper, the tenant quality might not be great. And that can cost you time and money. Try to find something that is surrounded by residential homes if you can. That way you are not competing with 30 other owners for rent.