Hi @Patric Doyle coming from a private institutional perspective, you will notice that lending for these multifamily properties (5+ units) changes, compared to buying rental properties that are 1-4 units. So, if you are looking to step into the 5+ unit space, then be prepared to learn a new set of lending guidelines.
Some of the changes for those are less leverage (more cash down), higher interest rates, more strict DSCR requirements, and the use of in-place rents instead of market rents.
This may be different with some lenders, but most follow those guidelines. I have had a lot of long conversations with my clients about they can expect when stepping into the commercial real estate space.
As far as steps to getting into multifamily properties and being proactive in feeling comfortable in stepping into that space, I would start with 1-4 unit rentals. Running those properties, dealing with vacancies, etc. A 4-unit property would be the closest thing you could buy/operate that would show you what a 5+ unit property would feel like, while still getting essentially the same leverage and rates for a SFH.
