Start with 4 units or go bigger

[Sterling Hill]

I have a va loan and was set on buying a 4 unit instead of a house . I thought this was my best option to get into real estate but listening to Uncle G , he says 16 units as a min for cover. I feel like that’s for people who have a lot of upfront cash so should I start with the 4plex and house hack . ( mind you I will have a down payment and not be over leveraged) All responses are appreciated

[Stephanie P.]

Originally posted by @Sterling Hill:

I have a va loan and was set on buying a 4 unit instead of a house . I thought this was my best option to get into real estate but listening to Uncle G , he says 16 units as a min for cover. I feel like that’s for people who have a lot of upfront cash so should I start with the 4plex and house hack . ( mind you I will have a down payment and not be over leveraged) All responses are appreciated

 You're both right.

16 units is a different animal requiring different financing.  If you have a lot of cash, go that route; but I wouldn't live there.  

4 units is the max for VA and it has to be owner occupied. Your best bet would be to go Fannie Mae with 5% down first (still 4 units must be owner occupied), then use your VA to get 4 more units in a year or so. Then after that, begin accumulating more doors and you're off to the races.

Best of luck

Stephanie