Let’s talk about multifamily and single family homes: Which one should you start out with as a real estate investor? Want more articles like this? Create an account today to get BiggerPocket's best blog articles delivered to your inbox Sign up for free OK, guys. There is absolutely no doubt in my mind which one you should choose to start with: single family homes. Now, before I tell you why, I have a short story about me and what we did. Doing Multifamily Deals—as an Experienced Real Estate Investor I run a turnkey company where we have bought, renovated, and sold over 1,000 properties. And last year, we just started doing multifamily deals. We pretty much lost our butt on the first handful of multifamily deals we did. Why? Because it’s a new type of investment vehicle for us, and it’s different from a single family home. There are multiple units, the renovations are different, the purchase price is different, and the regulations with the city are different. Related: 4 Steps to Get Started in Real Estate Investing Of course, we made a lot of mistakes—because we didn’t know what we didn’t know. Unfortunately, we lost. But you live and you learn, and then eventually you don’t repeat the same mistake. Then, you can proceed in a much smarter way. Beginning With Single Family Home Investing I think the same things goes for single family homes, guys. When I started my journey as a real estate investor, I started with single family homes. The same as I did with multifamily, I lost on the first handful of properties—because I didn’t know what I didn’t know. So in my opinion (something that I have shared with a lot of investors over the years), start slow and start small. The less you invest, the lower your risk is. My advice to you is if you’re looking to buy, fix, and flip—or buy, fix, and hold—go and buy yourself a C or D-class property. I know there is a bit of stigma surrounding these areas but who cares. Once you learn how to do it in those areas, you’ll definitely know how to do it in an A or B-class area. The Midwest is a great market, where you can find a lot of cheap deals in pretty decent areas, believe it or not. I’ve done a lot of other blogs on this topic—you can get $20,000 to $50,000 properties in solid B-class areas. So, make sure you check out one of those other blogs. Learning All You Can—and Getting Your Hands Dirty Look, you can only learn so much from the blogs that you’re reading or watching, the forums, the seminars, the books, or whatever you’re using to soak up knowledge. Practice makes perfect. Whenever you get your hands dirty and you do the work yourself, that’s when you’re going to get the most experience and learn the most. Related: Investors: Don’t Begin by Wholesaling. Take One of These 7 Paths Instead So, my opinion is start off slow and small. Pick a cheap, little property in the Midwest that is C or D-class—a single family home that you can fix up with a basic renovation. Sell it as quickly as you can, and try and make the most that you can. Even if you lose on the deal, just use it as a learning curve. Then if you want to buy, fix, and hold, try managing those properties yourself. I can pretty much guarantee you’re going to quit very quickly, and you’re going to pass off the reins to a property management company. All of these things are lessons learned along the way, right? Keep doing that, and you will learn areas where you want to be and how to renovate cheaper, how to buy cheaper, how to property manage better, and how to sell for higher. All these things will eventually propel you to the next phase, which could be multifamily (just like it was with us). It could be commercial, it could be hotels—whatever your heart desires. It’s important to note that I think you need years of experience in mastering how single family homes run from an acquisition, renovation, management, and sale standpoint. Do that before you can truly consider yourself an expert in that arena, and then take the step into multifamily. Guys, that’s just my opinion, and the path that I’ve taken. Some people jump into multifamily properties right away, syndications, and all the mumbo jumbo. I’m not a fan of that and prefer to get my hands dirty myself, so I can learn the hard way. That’s pretty much it. What do you think? I’d love to hear from you in a comment below.