4 units and under vrs 5 and over

[Thorney Gibson]

Hello all,

I currently own single family houses. My next step is to get into multi family. I see a debate between folks. Some say get start in 2-4plexs while others say to wait and get into the larger properties because of the scale factor. What input do you guys have that currently own both types? Thoughts? Experiences? regrets?

[Account Closed]

Multifamily means more than one. The only time there is a distinction is financing. If you are buying a duplex, triplex or quadraplex the financing community will finance them as if they were single family houses. What I mean is that they will look at you personally, your credit, income etc. But if you are buying a 5-plex or larger then they would look at it as a commercial loan and the income from the property is more important. Not saying they won't look at your personal credit or income, but mostly on the properties ability to make payments on the loan.  As with any investment that you don't live in you or you hire someone to manage it.