First purchase: single family, duplex, or quad?
I have $50k saved up to purchase my first property? I am debating if I should use this as a down payment on a more expensive small multi family such as a duplex or four plex? Or am I better off starting with a single family, spending less for the down payment, and building a portfolio slowly by adding doors down the line? Please forgive me being naïve, am I obviously new to this process. Any input or criticism would be greatly appreciated. Thank you.
Jared
I am a believer in starting small and scaling up as you learn. Are you going to be living in the property? If so, I would definitely recommend getting a duplex or quadplex. This will benefit you in the future when you are looking to buy more properties. Even if it is an investment property, there is nothing wrong with starting with a duplex or quadplex. I started with SFR because I can understand them and there is a lot of value add potential on those in my market. Duplexes that will fit my goals ( in my market) are few and far between, and when one comes up the competition is high.
I realize the need for MFH to build cash flow so will have to get familiar with other markets for this reason. But right now, I am building my portfolio in a market I understand and am able to justify the risks that I take because I know the market. Hope this helps!
