2 fourplexes or one 8 Plex?

[Jak Dadi]

What is better???? buying two fourplexes or one eightplex???

[David Beard]

Buy the four-plexes:

* The extra 2% of spread on resi financing will overwhelm the higher upfront closing costs.
* Liquidity - you can sell just one if necessary to a larger buyer pool
* ROI - larger LTV will amplify cash flow/ROI
* Refinancing risks - eliminated with resi, 5 yr term likely on the comm
* More tenant separation, less dispute
* Diversification - if an area takes a turn for the worse, the 4's in different locales (mile or more apart we'll say) will lesse impact
* In my area, landlords don't have to provide a dumpster for 4s', but do for 5+.

If you go resi on 4's, might use a bank that also does comm, so that later you can leverage the relationship when you have larger projects or too many units to use resi(even if they're separate departments).

The vacancy argument has no merit, you have x% vacant of x units owned, doesn't matter how many properties.

Good investing