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25
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8
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Michael Morton
  • Harvard, MA
8
Votes |
25
Posts

Strategy: Buying MFH with more/less than 4 units?

Michael Morton
  • Harvard, MA
Posted

My long-term goal is to own a portfolio of cash-generating rental properties.  As I start out, would you recommend purchasing MFH with <4 units (conventional lending possible) or jumping to >4 units (and commercial loans)?

I have funds to start either way (say, price under $1m) - but will need to get cash out (BRRR?) to continue to grow over time. My background is starting/running startup companies, so I'm not afraid of jumping in "big" and getting this going as a business.

Just interested to hear others experience.  If I want to eventually own many units, are there pros/cons starting out at a particular size MFH?

Thanks!