Quote from @Jim K.:
@Andrew Bosco
So your profile shows that you have some property management experience, in your househack and the other STR/MTR duplex you manage for your family, but not a lot. I see nothing in your profile about practical maintenance and renovation experience, nor do I get a sense that you have a burning desire in your REI to do a lot of either.
The 5+ will require a commercial loan. The underwriters of those loans are going to be looking for experience running rentals that you don't have yet.
Everyone and his brother, at least in my area, is looking for an affordable 2-4 unit property in good shape and with good tenants in place that they can get very generous residential financing for and househack in. It doesn't take a real estate genius to figure out that living free or near-free is a wonderful thing. So there is no such thing as an affordable 2-4 unit in a good location, in good shape, and with good tenants in place that is for sale. You simply need to take that as a given when you go hunting for these properties. Either they're selling it because they want A LOT OF MONEY, or it's in the high hood, or because it's a crapshack of a money pit with a ton of deferred maintenance, or because they have more trouble with the tenants in place than they want to deal with.
However, I have no interest in convincing you not to do, well, anything. I don't know you. You may just be the perfect guy to invest in small multifamily with residential financing.
I just felt this was a good place to point out some of the problem points of investing in 2-4 unit properties, as well as mentioning the experience issue on a commercial loan.
Love the response! I'm a scientist by trade and when I am "all in" on a category, then I play the "10th vote", which a rule that if 9 team members out of 10 agree something is a good idea, then find the wrong idea. So it's interesting to hear the feedback of the con's when so many give the pro's.
I am going to (one day) invest in large commercial projects/properties of my own. Starting small and will eventually make my way to the bigger commercial projects. I just happen to try everything :)
