Why so many recommendations to go multi family - commercial?

[Brandon Pace]

I'm a newbie and have recently purchased 3 properties, all townhomes in Utah. Two are in southern Utah and will be vacation rentals which will cash flow really well. My third is a long term rental in northern Utah that will appreciate well but cash flow low. I'm looking to take the next step by investing out of state where properties are more affordable. I'm trying to decide on a market but also on the best strategy for me to scale my business by acquiring either SFH or small multi-family residential - duplex, triplex, or fourplex or 5 plus multifamily commercial. My goal is to buy and hold rental properties and in 5 years have the option to retire (if wanted) from my W2 job. Has anyone stepped through this that could recommend which is the best approach to scale at this early stage?

[Anthony Gayden]

@Brandon Pace

I’m going to attempt to answer the thread title question. There are a few reasons why so many suggest to go multifamily/commercial. Here are the reasons I went that route.

It is because it is a longer and slower process to scale single family rentals. I bought an 8 unit last year (package of 4-duplexes), and it took far less time and effort than purchasing 8 individual SFRs. Management is easier since they are all adjacent in one location. Financing was far simpler. Adding value is a function of increasing cash flow rather than comps.

The amount of effort and time I spent buying those 8 units is equivalent to the effort and time of buying one SFR.