However, if you are an out-of-state slumlord, you can now pass 100% of the financial and legal liability of maintaining a property onto some poor local.

Focus on building and maintaining active income first.

If one or more units are vacant, the remaining units often don’t provide enough cash flow to cover expenses, making it harder to meet operating costs.Maintenance costs: A fourplex comes with four times the appliances, plumbing, HVAC systems, and other components to maintain, leading to significantly higher repair and maintenance expenses than single-family homes.If you want to see the detailed calculation, read this BP blog - More Units Doesn’t Mean More Money—Why a Single-Family Home Can Beat a Fourplex.Resale value: Multi-family properties have a limited buyer pool—mainly investors—who base their offers on CAP rates.

This allows them to get more capital so they can make more loans without having to grow their asset base, while also maintaining their relationship with the customer through monthly payments.

A nice 3 bed 1 bath around 1200 sq ft is easy to buy, cost very little to maintain, rents easy, and is easy to sell to another investor or a homeowner.

To thrive in real estate investing, you must maintain a firm grip on your finances.

To thrive in real estate investing, you must maintain a firm grip on your finances.

The model does in fact require owners to share a percentage of their rental income, but they still maintain full ownership of the property and decision-making authority.

If the separation of funds was for asset protection (in this case there was another reason), it is my belief that an umbrella policy is easier than trying to maintain separation of assets especially when the property has been purchased with individual’s money and financing.  

In Costa Rica, property condition is a constant variable, far more critical to maintain than the USA.