Should I buy a 4 unit or 6 unit?

[Jacob R. Crosby]

Hey Guys!

I'm new to the site and Real Estate investing and wanted to got some input on a question I have.

I currently have 2 duplexes and I believe I am ready for something bigger. I know you can get traditional financing with apartment building up to 4 units but I am curious if I should buy a 6 or 8 unit?

What one do you recommend and why?

[Ryan Murdock]

Once you get to 5-units and above you're into the commercial realm. Pretty much everything is more expensive with less attractive terms - financing, insurance, trash removal, etc. However, if you buy it right the added income can offset those higher operating costs and some of your expenses may actually be reduced if you look at "per unit" cost: 1 furnace, 1 roof, 1 parking lot to plow, etc. To me, usually the more units under one roof the better, but like anything else it comes down the the results of your overall analysis for each particular property.