6-8 Plex VS Two 4plexes?

[Daniel Sager]

I just met with a commercial lender today to plan for my Fall 2020 plan and ran some numbers on a couple of properties I had selected currently on the market. I say Fall because that is roughly when I will have the funds for 20% down on a 6-8 Plex property.

After looking at the cashflow numbers, they aren't really as high as I had hoped (looking at mainly C properties) and am now thinking I would actually be better off buying a 4plex sooner with 20-25% down and then, as soon as I am eligible to move out of the 4plex I am currently hacking, doing another FHA and moving into a third 4plex for 3.5% down. The cashflow would be better and I would be less out of pocket. Also, as my realtor mentioned, 4plexes are much easier to unload when I am ready.

I had wanted to move into commercial because of the cashflow but now rethinking. Thoughts?