If he has the income to support a $550k mortgage, and a healthy cash reserve fund, he should invest the money.

Especially in the zip codes @Stuart Udis mentioned above, and around Temple University. 

As was noted, you don’t have enough equity in #3 to tap, so it’s just a financial self-supporting carry.

I can't comment just yet because I'm not completely up and running but they have had the best support out of anything I've tried before.

For your first multi-family property, focus on areas with strong rental demand but lower prices, like cities with job growth or near universities.

Just make sure the rental market can support the property’s expenses and have a plan for property management if you’re still in California.

@William VreelandKnoxville Pros: With family nearby in Nashville, you may have a solid support system in Tennessee, which could make managing properties easier, especially if you're new to the market.

Celebrate small wins, learn from each experience, and lean on your network for support.

Ultimately, your ability to get a multifamily loan is going to hinge on the property's ability to support its own loan.

Happy to answer any questions you might have and we have the vendor list to support whatever strategy you choose.