All Forum Posts by: Mike Rutherford

Georgia also has a few excellent grant programs under Governor Kemp. We have two applications in with One Georgia. 

Interesting read about rural growth:

https://www.biggerpockets.com/blog/young-americans-are-incre...

We’re excited to announce our 24-unit multifamily development in a growing rural Southwest Georgia town—offering double-digit cash-on-cash returns and an estimated ~7% cap rate once stabilized.

✅ High Yield Potential
✅ Built-in Property Management (if desired)
✅ Small-Town Growth, Big-Time Returns

This is a prime opportunity to get in early on a stabilized, cash-flowing asset in an underserved market.

📩 DM me if you’re interested in learning more—limited spots available!

#MultifamilyInvesting #CashFlow #SouthwestGA #GroundUpDevelopment #PassiveIncome

One strategy I believe more investors should pay attention to right now is leveraging state and federal housing programs to develop affordable multifamily properties. With rising construction costs and tighter lending standards, many investors overlook the financial advantages these programs offer—such as low-interest loans, tax credits, and grants.

In particular, initiatives like the Florida Live Local Act provide significant incentives for developers focused on workforce housing. By aligning your projects with these programs, you can reduce your capital requirements, secure favorable financing terms, and even access funding sources that aren’t available in traditional deals.

Additionally, small-town development is another underutilized strategy. Many secondary and tertiary markets across the Southeast offer affordable land, less competition, and municipalities eager to work with developers to address housing shortages. With the right approach, these markets can deliver strong cash flow and appreciation without the intense competition seen in major metros.

Curious to hear if others are exploring similar approaches—or if there are other "hidden gem" strategies flying under the radar!

First off, congrats on starting your real estate journey at 25! You’re in a great position with strong savings, a supportive partner, and a clear goal of building a rental portfolio.

Single-Family vs. Multifamily for House Hacking

Both approaches have merit, but given your long-term goal of owning multiple rental units, I’d strongly consider multifamily (duplex or triplex). Here’s why:

1. Scalability & Cash Flow – A single-family with one roommate is a good intro to landlording, but a multifamily allows you to collect rent from multiple tenants, significantly offsetting your mortgage. This accelerates wealth-building and gets you accustomed to managing multiple units early.
2. Risk Diversification – If your friend moves out of the single-family, you’re covering 100% of the mortgage. With a duplex/triplex, even if one tenant leaves, you still have income from the others.
3. Time Commitment – Managing a duplex or triplex isn’t necessarily 2-3x the work of a single-family, especially if you screen tenants well and set clear expectations. Given that your fiancée is organized and interested in managing, this could be a great division of labor. If needed, you can always outsource maintenance tasks to local handymen or a part-time property manager.
4. Financing Considerations – If you have the means to put 20% down, that's great for avoiding PMI. But don't completely dismiss an FHA or other low-down-payment options, especially if keeping more liquidity in your portfolio is valuable to you.

Is Now the Right Time?

Your biggest hesitation seems to be the time commitment. While multifamily does require more involvement than a single-family rental, it’s very manageable if you treat it like a business—good systems, good tenants, and a proactive approach to maintenance. If your partner is willing to take the lead, that’s a huge advantage.

Final Thoughts

If your long-term vision is to scale into multiple properties, starting with a small multifamily now will set you up for success much faster than a single-family. The learning curve will be real, but the rewards—cash flow, equity growth, and future flexibility—are worth it.

Would love to hear what properties you’re currently looking at! Also, we’re actively working on 12-24 unit developments in high-growth areas, so if you ever want to scale beyond house hacking, happy to connect.

Best of luck!
Mike

Hey @Robert Ok

Great question! It really depends on your goals, risk tolerance, and how hands-on you want to be.

Single-family rentals (SFRs) are often seen as the “easier” entry point—lower price per door, simpler financing, and easier to exit if needed. But they come with challenges, like vacancy risk (one tenant = 100% vacancy if they leave) and slower scalability.

Multifamily (2-4 units or even 12+ units) can actually be a better long-term move. More doors under one roof means lower vacancy risk, better economies of scale, and in many cases, stronger cash flow. The biggest hurdle is financing—lenders look at multifamily differently, and it often requires more capital upfront.

That said, if you're looking to scale your portfolio quickly and build real wealth through REI, multifamily is a solid starting point. I've seen plenty of investors start with duplexes, triplexes, or small apartment buildings and never look back.

Curious—are you looking at residential (2-4 units) or commercial multifamily (5+ units)? We’re working on some 12-24 unit developments in emerging markets with strong demand, so if you’re thinking bigger, happy to connect!

Cheers,
Mike

Hey @David Lowe

Great question! There are a lot of solid markets depending on your strategy. Here are three I like based on your criteria:

1. Huntsville, AL – Strong job growth (tech, aerospace, and defense industries), affordable property prices, and a growing population. You can find solid B/C neighborhoods with good cap rates and properties that need only cosmetic rehab.
2. Columbia, SC – Steady demand from government, healthcare, and universities. Low acquisition costs with room for appreciation, plus plenty of workforce housing opportunities in A-C areas.
3. Macon, GA (or similar secondary markets in the Southeast) – Rising rental demand with little new supply, lower competition than bigger metros, and strong cash flow potential. You can find properties with good cap rates that just need cosmetic updates.

Also, curious—what’s your target price range? We’re working on 12-24 unit developments in emerging rural markets with strong rental demand. If you’re open to something a little outside the typical metro areas, we’re seeing great returns in places where new supply is nearly nonexistent.

Looking forward to hearing what markets you’re considering!

Cheers,
Mike

Hey Kim,

Great points—tertiary markets and C areas on the verge of gentrification are exactly where we’re seeing solid opportunities too. The demand is real, but local governments need to catch up with zoning reform, density allowances, and incentives if we’re going to make meaningful progress.

Totally agree that electing the right officials matters. The resistance to density and ADUs is frustrating, but it’s becoming harder for cities to ignore the affordability crisis. I think we’ll see more municipalities start offering tax incentives, fast-track permitting, and infrastructure support—because, like you said, we can’t just keep building Class A at sky-high costs and expect it to solve the problem.

Curious—are you seeing any cities or counties that are ahead of the curve on zoning or incentives? We’ve had some success working in rural counties where leadership is pro-growth, but it’s still a mixed bag.

Let’s keep the conversation going—housing solutions are going to come from investors and builders pushing the envelope, not just waiting on policy changes.

Cheers,
Mike

Hey @Anne Musa

Congrats on looking for your first rental! It’s great that you’re weighing your options carefully. The best choice depends on your goals and risk tolerance. Here are a few things to consider:

• Class A Duplex (Low Cash Flow) – You’ll likely have more stable, higher-income tenants, lower maintenance, and better long-term appreciation. However, the lack of cash flow could make it harder to scale or cover unexpected expenses.
• Class C 4-Plex (Higher Cash Flow) – More units mean more rental income and better risk distribution (one vacancy won’t kill your cash flow). That said, Class C properties often come with higher maintenance costs, more tenant turnover, and potentially more management headaches.

Since you don’t have a strategy yet, ask yourself:

• Do you want long-term appreciation or immediate cash flow?
• How hands-on do you want to be? Class C properties can require more management.
• What’s your financing situation? A stronger cash flow property can help cover mortgage and reserves faster.

Also, just curious—when you mention the dollar amount, is that your total budget or just your cash down? If you're open to exploring something with more scale, a 12-24 unit could give you even better cash flow and economies of scale while still keeping management reasonable. We’re working on projects in the Southeast and always open to chatting with investors who want to get into multifamily with a strong foundation.

Happy to share more insights if that’s something you’d be interested in. What market are you looking in?

Cheers,
Mike

Appreciate the insight! That’s great to hear you’re seeing the same trend in small towns nationwide. Affordability and community seem to be huge drivers—people want out of the high-cost, high-stress urban grind, but they still need quality housing options.

I’d love to hear more about your small-town revitalization group. Are you seeing any common roadblocks to growth—zoning, infrastructure, financing? And how are communities handling the influx of new residents? We’ve found that local governments are often eager for development but don’t always have the resources or experience to streamline the process.

Also, curious—are you seeing more build-to-rent developments popping up in these areas, or is it still mostly single-family? We’re leaning into apartment projects to hit that middle ground between affordability and density.

Looking forward to swapping more ideas!

Cheers,
Mike