2-4 unit properties!

[Quentin Mitchell]

I know there are a lot of people who love single-family homes and there are other's who swear by commercial 5 units and up, but I think 2-4 units is another niche noted talked about as much and I think it is a great way to start.

Things I like about it.

You are doubling, tripling, or quadrupling, your income because you are receiving rent from more than one tenant

It's possible but unlikely that all the tenants will move out at the same time, so you will mostly have some income coming in at all times ( you can easily manipulate this by staggering leases).

You can get commercial experience on a small scale without the big risk of a bigger project out of the gate.

You can house hack with somewhat of a homey feeling opposed to being in a big apartment building with a lot of people.

You can fund these deals a little easier than the commercial (cheaper).

Sometimes it's can be easier to find these types of properties because most people go for single-family or Commercial. 

Things I don't like

The value is based on comps and not income being created.

In some markets, a good smaller multi-family can be harder to find.

You have rehab multiple kitchens, multiple bathrooms, multiple living rooms, etc.

Feel free to add anything I may have left out, also even though I like smaller multi-family I think long term commercial should be the goal in order to scale and create wealth and financial freedom.

[Stace Caseria]

I agree that 2-4 unit buildings can offer advantages over other investment classes, but it all depends on your goals, experience and expertise. They certainly offer scale above SFH.

What I think is one of their most attractive benefits is that you get a quick education in dealing with multiple tenants simultaneously, people whose lives and actions impact your other tenants. This can be helpful to build an understanding of "how people work" and give you ways to learn who your customers are and what expectations they have. In my day job as a marketing professional, getting to know your customer is a central pillar to building a successful brand or marketing campaign. Works the same in real estate investing.