New Investor - Should I go with a single-family or multi-family

[Cristine M.]

Over the past few days, I've been working on honing my underwriting skills and would like to "fine-tune" my strategy. I'm reaching out for opinions on whether a SFR or a MFR is a smart RE investment relative to my financial condition:

Can provide up to 50K down payment and in “theory” should be able to obtain 15% on a traditional loan. Can absolutely save more money for a higher down in the upcoming months as well. I'm also a consultant- so my job requires that I travel locally around the LA area. 

If you were me, would you invest in a single-family or a multi-family property? Why would you pick one over the other? Due to my current budget- would it be wise to go with a small investment such as a SFR or wait until I accumulate more income for a reasonably sized property/buffer for a recession?

Any and all thoughts very much appreciated! Thank you BP community!

[Liam B.]

@Cristine M. I assume anyone wants to buy a MFR to obtain cash flow each month and hopefully gain appreciation in the property. With 50k you will not have any cash flow with purchasing a MFR in LA. Buy a SFR and make sure it has a good enough garage to build an ADU. The ADU will bring you cash flow if the numbers align.