Whether to stick with small properties or scale into bigger multifamily depends on your financial goals, management preference, and how aggressively you want to leverage tax advantages.Staying with SFHs & Small Multifamily (Under 4 Units)Pros:Easier financing (conventional mortgages)Lower acquisition price per dealSimpler to liquidate individual propertiesFamiliar territory with less complexityCons:Harder to scale to $20K–$30K/month cash flowMaintenance and tenant turnover per door is less efficientSlower appreciation and less control over valuationTax Insight:Properties qualify as residential for 27.5-year depreciation.You can deduct mortgage interest, taxes, repairs, management fees, etc.However, losses (due to depreciation) are passive, and you likely can’t use them to offset W-2 income unless you or your spouse qualify for Real Estate Professional Status (REPS).Scaling to Larger Multifamily (8–20+ Units)Pros:More efficient operations (economies of scale)Higher cash flow per propertyEasier to increase property value via NOI improvementsIdeal for long-term hold strategiesCons:More expensive to acquire and financeCommercial loans require higher reserves and more due diligenceMay need partners or syndication structureTax Insight:You can do cost segregation studies to accelerate depreciation (break property into 5-, 7-, 15-year components).This allows for bonus depreciation—100% bonus is likely returning in 2025, giving a powerful deduction in the first year.Even without REPS, bonus depreciation may offset other passive gains across your portfolio.If you or your spouse ever qualify for REPS or use the STR loophole, you could apply those deductions to offset W-2 income.This post does not create a CPA-Client relationship.

Another component is capital expenditures that adjust the basis (book value) of the improvements. 

Hi Nida,I'm a bit late to the party but better late than never I guess lolIn the search bar here on Bigger Pockets or even a Google research will reveal a lot of info about certain companies.I'd always like to joke around and say that "Google is your best friend" when looking to work with someone new lolI'd like to second Jason's comment who has been around the turnkey game for a long time and has probably conducted due diligence on many if not all turnkey providers over the years.Not many have stood the test of time and I'm proud to say that we have.Not intending to plug my company as we have many battle scars that started from day 1.But still here and still battling away 🤓Why we survived and thrived unlike many others was keeping our operation small and boutique and only doing deals on our terms.Low volume sales and thorough investor pre-qualification (As not everyone that has a pulse is necessarily a good fit for what we can provide).Some investors did better than others but one thing I can happily say is that we always did our best for all.I believe a very important component to any "true" turnkey company is that the penny ultimately drops must drop with them.Meaning, if you invest and things don't go the way as planned it is entirely up to them to rectify.No finger pointing or passing on the monkey to someone else (Like a realtor, contractor or PM).A true turnkey company stands behind it's properties, rehabs and in-house property management.Key phrase here is "in-house property management".Everything must be under the same roof and the provider must take all responsibility for the outcome of that investment.Wishing you much success

Right now, my focus is on studying and deepening my understanding of the following: a) market analysis; and b) deal analysis, specifically with respect to what a pro forma looks like and its key components, such as ARV, ROI, cash-on-cash return, Purchase Price and Acquisition Costs, Rehab/Repair Estimates, Holding Costs, and exit strategies.Even though I don’t have capital, I’m eager to learn as much as I can and absorb as much information as possible.

Nashville has a lot of these great components BUT it has 1 very painful thorn in the side, median incomes.

Especially in Iowa when it is 0 degrees and 30 mile per hour winds.These properties we are doing have the Teak component, but they all have secondary values with locations, building sites, phone/internet reception, water, palm trees, fruit trees etc. 

Construction can have unforseen costs, construction loans for rounds of funding can be more expensive over time, rent markets can drop, vacancies in market can increase.Typically entitlement phase of land most risk, followed by development, followed by vacant building turn around, followed by half vacant building, followed by mainly full building with value add component, followed by brand new building with market or below in place rents and everything new with good location.Along that spectrum of course you go from heavy equity upside potential to mainly just the cash flow return and hopefully price appreciation over time.Investors have to decide on the spectrum of their risk assessment to capital over what period of time how they will allocate between all one type of investment or multiple and what percentages.

Quick overview of our firm is three components.

Right now, my focus is on studying and deepening my understanding of the following: a) market analysis; and b) deal analysis, specifically with respect to what a pro forma looks like and its key components,  such as ARV, ROI, cash-on-cash return, Purchase Price and Acquisition Costs, Rehab/Repair Estimates, Holding Costs, and exit strategies.Even though I don’t have capital, I’m eager to learn as much as I can and absorb as much information as possible.

Two critical components that are often underestimated, tax planning and asset protection, can make the difference between short-term gains and lasting wealth.It's easy to get caught up in the excitement of acquisitions and high-stakes deals.