$1 Million To Invest In Multifamily

[Peter Hamilton]

Hello,

I have a single-family home portfolio with a total equity of ~$1million. I also have ~$500k equity in my primary home.

I realize that having that much equity tied up in a handful of properties is not the best approach to maximizing returns. 

What do you guys think is the best strategy to use this equity to jump into multifamily in order to get greater returns? Is it better to buy many separate fourplexes or put all my eggs in one basket and buy a larger apartment complex?

Another factor I have been thinking about is keeping these single family homes for the purpose of net worth requirements for a commercial loans and saving a 25% down over the next 3 years for a ~$1.8-$2 million multifamily property.

I wanted to get your guys thoughts on my situation and thank you in advance for your responses. 

[Bjorn Ahlblad]

@Peter Hamilton welcome to BP! I lean towards your option 2. I don't like selling properties, it has been work to find them and getting them to perform the way I want. A bigger MF 12-20 units or even more is very cost effective to maintain. Having all your tenants under one roof is considerably less work and means more profit. All the best!