Should I buy a Duplex, Triplex, or 4-Plex

[Daniel Howard]

I'm just starting out in learning real estate investing, and I'm interested in looking at getting some rental units. I'm currently living in my first house I've purchased, and I am considering whether I rent my current house out and move to a duplex and rent out the other side. I'm also considering on whether I sell my house for a larger down payment and use that to help pay for a triplex or a 4-plex in which I live in one of the units. Does anyone have any experience with this and any feedback on how it worked for them?

[Nathan Schiess]

@Daniel Howard From a property managers point of view I would just say be prepared for what you are getting into. It's not that having a single tenant versus 3 total tenants is that big of a difference, but it is 3x the problems, maintenance issues, etc. 

I know that many people who purchase a duplex, triplex, or 4-plex try to manage by themselves. I have no idea what your situation is, but I would just say regardless of what option you go for (duplex, triplex, or 4-plex) make sure that you are prepared to put in the time and effort necessary to manage the units as a business. 

I don't say that to sound ominous, it's just a friendly reminder that even some very qualified tenants might let you know 2 months into the lease that they now have 2 pit bill "emotional support animals" that you can't do anything about. Perhaps you have a tenant who is a single mother that can't pay rent this month because her child got sick, but you know that you have to evict her or you might end up losing the property. 

These are real examples that I've dealt with. My point is, if you want to ease into it, I'd say start small and learn as you go. It's always easier to deal with 1 big problem than 3 big problems, especially if you are in uncharted waters experience-wise. However, If you are prepared and ready to commit to being a landlord that runs a profitable business and can make the tough decisions then go big and get the 4-plex!

Good luck my friend! Feel free to reach out to me about any property management issues you come across, I'd be happy to help!