BRRRR or down payment on multi family?

[Zeke Francisco]

Hello I’m just getting started out and I’m very excited. That said I own a three bedroom two bathroom single-family unit in Michigan. I have quite a handyman background am in currently beginning the remodels to raise the equity. Basics like new floors paint etc. my question to everyone is should I raise the equity and take the money to buy another single family or use the money to make a down payment on a multi family unit?

[Michael Glist]

I would say this will depend on what your goals are. 

If you are looking to build a large portfolio that you will self manage, you will want to make sure that you are able to manage everything on top of what you are already doing. 

If you are looking to build a portfolio and pass it off to a property manager than you will need to make sure that all your numbers work with paying a property manager. 

Although a multifamily would give you more units and potentially more cash flow it may also be more work which you may or may not want or be ready for. You can also look into purchasing a few SFRs and growing that way.