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Updated over 3 years ago on .

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3
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Dustin Cooper
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3
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Sell paid for SF rental for down payment on MF rental?

Dustin Cooper
Posted

I am looking for advice as I am interested in buying my first multifamily rental unit (at least 4 plex)

I have a paid-for single family unit that cash flows about $650/month that I purchased for $25k but is now worth about $50k. Good tenant and rental history.

Should I sell this unit and use the $50k as a down payment (25% on a $200k 4 plex) on a MF unit? Roughly guessing the 4 plex will cash flow at least $1200-$1500/month even with a mortgage.

If I keep the SF, I will have to wait 3-4 years before I can come up with the $50k down payment.

I feel like many will say I should do this since the numbers probably make since, but I don't have experience with MF yet and looking for insight from others who may have been in the same situation before.


Thanks!