My Partners and I have been buying Brooklyn small multi's (2 to 4 Unit buildings) since 1998.We currently own 9 of these buildings in various neighborhoods including Clinton Hill, Bed-Stuy, Windsor Terrace and Ditmas Park.Total Assets would be somewhere between $15 and $20 Million in the portfolio.Every since we bought the first property, which was in Ditmas Park for $340k in 1998, everyone told me it was crazy.I continue to hear how crazy I am to continue to buy every one or two years since 1998.That $340k Property in Ditmas Park is worth $2 Million today.

Common concerns in pre-1940s buildings include outdated plumbing, old electrical systems, and structural issues that could be costly to bring up to modern standards.

In the next few months, I'm looking to get a standard CA NAA lease with RUBS included for billing the water and sewer, as well as requiring tenants to have their own renters insurance, as that is not something they are currently required. 

Violating these rules can lead to severe IRS penalties, including disqualification of the tax-advantaged status of your retirement account.Each self-directed retirement account must have sufficient funds to cover all property-related expenses, as you cannot personally pay these expenses.

They often times have a configuration that includes essentially two living rooms.

AND if one is savvy, can also get financing, as an investor/investment purchase, including a list of perks. 

I’ve seen it happen...Anyway, here’s a great summary, courtesy of the amazing @Avery Carl, of the kind of numbers you can expect down south (including complete pro formas).

We like markets in the midwest and southern US, including Houston, Dallas, Fort Worth, Phoenix, Columbus (OH), Tulsa and others.

Look at the potential rental income and whether it will cover your costs, including property taxes and maintenance.Taxes.

Multifamily is optimal, but out of reach for many due to the price.Other options include doing a rent by the room situation.