This negative equity position is one of many reasons that adding ADUs in a single family zone is not typically a good RE investment.OP whatever you decide to invest in, make sure you do thorough and conservative underwriting. good luck You’re right in that the level of underwriting I presented wasn’t institutional level - but for your average person just starting out, institutional grade analysis often makes the thought of investing overwhelming.

I’m mostly interested in multi family homes (using the Brrr method).

Investment Info:Small multi-family (2-4 units) buy & hold investment.

@Shaun Ortiz providing for the future needs of my family, RE is my retirement planning vehicle of choice.

The single family homes I have are 3 bedroom but the tenant pays for them. 

With current interest rates, and they are at least 1% higher with potentially additional points for non owner occupied property, it is hard to find properties that will allow for positive cash flow after paying the mortgage, if you are looking for money for the down payment from a private lender, those are normally at higher than market and I am not sure it would be possible to pay it off.... please remember you need to take into account that you may not have a tenant for a certain amount of time, a tenant may stop paying rent, or you will have a big ticket item to fix, so I would wait if I were you and save to have enough for the down payment and closing costs and perhaps some money set aside for repairs. you also want to make sure that you have your own emergency fund outside of the money needed for the investment property because life happens ....

My B class single family rentals have working class people in them mostly and only a small portion would be comfortable with automatic payments for something that large.

I have decided the multi family is the best path forward for my current life situation. 

I’m getting ready to make my next move in 2025 and I’m contemplating on staying here and buying a multi family property as an investment out of state (only an hour away) which would be a lot less capital and have a lot more land lord friendly laws or buy another multifamily as a primary residence locally and hack that property I’m single and live alone.

Your first move at 18-21 should be house hacking (buying a small multi-family and renting out units).