Hi BP community - I'm an investor with 3 SFHs in the Nashville area looking to acquire my first small multifamily property (2-4 units).I'm trying to determine the best approach for the 25% downpayment, comparing using cash that is currently sitting in a high yield savings account to funds from a HELOC on one of my properties.

This plays into the affordability issues for tenants by allowing them to live in nicer neighborhoods for less money, yet I get monthly revenue comparable to short-term rentals.

We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

What happens to the 'comparable value' if the area is uninhabitable or a community that won't return for years? 

We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

Things like your ADR, photo quality, current ratings, the number of reviews compared to your rating, and, of course, listing optimization (SEO).

The rental yield is pretty low compared to its value, and selling now while it’s in great condition could help you avoid the stress of managing it or dealing with wear and tear.

In addition, condos tend to not appreciate as fast in value compared to single-family or multi-family homes. 

Multifamily properties do require more management overall and typically appeal to a smaller, investor-focused buyer pool.At my stage, I prefer small MFH over anything else because of the stronger cash flow, scalability, and the more forgiving capex compared to larger MFH, but the best option depends on your goals and strategy. 

The market still has relatively low entry points compared to other major cities, making it possible to find multifamily properties like duplexes and triplexes in the price range you’re targeting.