Where is the $$$ in Small Multi Family investing?

[Joe Faruko]

Hi BP Community,

I am 24 years old with 65k saved and really pushing to becoming financially free as soon as possible. Many members mention buying small multi families until they are financial free - but how long with that take with the usual $100-$200 per door model? When does investing in SMFH really become worth it?

Example of a typical duplex in my area:

Lets say I use 50k for 25% down on a 200k duplex in CT. Let's say after p&i and setting aside money for a pm + capex/maintenance I receive 200-300 total a month. So I initially put down 50k to only receive 200-300 a month? Though members suggest to BRRRR - you would still have to wait 6 months before banks allow you to refinance and lots can realistically go wrong if you go over budget or under your estimated appraisal.

What am i missing here. How is anyone reaching financial freedom with such a large down payment and low cash payouts? Keep in mind, I’m not even including the freak repairs and vacancy in my calculations - this is if you receive 200-400 ever single month.

Is this just an economies of scale thing and needing to acquire 10+ proprieties?

Thank you in advance