Quote from @Andrew Garcia:
Hi @Brandon Rauscher, a lot of 2-4 units are going to people that are house hacking.
Ultimately, if they need to pay $500 a month, they do not really care since that is still way less than a typical mortgage payment.
If you are looking for a 5+ unit, the lower the cap rate, the higher the forced appreciation.
It is simply a different strategy.
Hope this helps! Let me know if I can be of any assistance.
Personally I am looking for 5+ unit buildings. I have been watching the 2-4 units as well hoping to come across something. So far, the majority of properties are negative cash flow $1-$2k per month. Even with a value add strategy, it seems as if it would be hard to hit a positive cash flow to the point in which the property makes sense to own.
I know there are some investors that simply need a place to park cash and gain tax benefits and wait for appreciation. However, I don't this is the norm. Generally a break even or cash flow positive investment is desired. Especially in todays market where as appreciation is no longer guaranteed.
