Small multifamilies are scarce. Should I go smaller, bigger, or stay the course?

[Elaine Raymond]

I’m a first time investor looking to househack with a small multifamily (duplex, triplex), but they are scarce and competitive in my area. I’m not interested in renting out a room in my primary residence for safety and privacy. Should I go smaller (e.g., house with a mother-in-law suite) or bigger (e.g., small apartment complex)? Frankly I haven’t considered going bigger until now because I’m intimidated by the idea. 

[Ryan Thomson]

@Elaine Raymond 

Going bigger than a fourplex will require a LOT more down and higher interest rates. I would stick to residential multifamily or below. 

Here is what I look for in single family: an easy way to split into multiple units, a walk out basement, an ADU, a garage I could convert, or lots of bedrooms.

Run the numbers and see what works best. Reducing your living expenses and considering the net worth ROI of owning real estate, paying down your mortgage, long term appreciation, and tax benefits will make it a great investment.