Owner occupying a 2-4 unit is a great way to build a portfolio. It allows you to get great financing and be hands on rehabbing and managing until you can do it again.
Fourplexes have the advantage of more leverage and smaller impacts on cash flow during vacancies.
Start with talking to a lender. If you're going FHA, there may be maximum loan caps in your market that will rule out certain properties.
@Cody Qurollo Hi Cody, If you want to be in the Layton area there is a great pocket of 4 plexes near Davis Hospital. I walked through one a few years ago. I would look there. They come up every now and then and usually they need some rehab and then rents can be pushed up.
I would definitely go for a 4plex if you can afford it since you have use the same loan but get more units.
You do need to talk to a lender first to see what the max amount loaned is on an FHA.
I hope this helps Cody.
From 2-4 units there is not much difference. Go for the 4 if you have the finance to do so. Great way to spread out your risk. Once you start looking into an SFR that is when you will notice a difference. SFR tenants tend to be families and to stay longer. My first investment was a 4 plex 17yrs ago. It was a great way to get started in the game. I always kept my units better than my competition and I always rented it for slightly lower than the market. I would list it for rent and get bombarded with calls. For me getting the best-qualified tenant and the shortest turnaround was most important.
Not many cons to a 4 unit. You basically have a mini apartment. Perfect first property.
Be patient and when the deal comes you will know it. I think right now there is just this major thirst for doors doors and more doors. People buying just to buy and talking themselves into deals. If the deal doesn't feel good don't buy it.