Should my first MF be a 2fam or 3fam

[Kodi Parker]

I’m looking to purchase my first MF property and have been advised of so many different things that I’m completely lost at this point. I want to know the pros and cons of the amount of units I should strive for and what makes the most sense investment wise.

[Frank Geiger]

Typically, the more units the better. For example,

If 1/4 units are vacant, that means 75% of tenants are paying rent. If your criteria is $200 per unit cash flow a month, that's $800.

If 1/3 units are vacant, that means 66% of tenants are paying rent. If your criteria is $200 per unit cash flow a month, that's $600.

Both are great options. Just because it has more units doesn't make it a better deal. You need to look at it holistically. Spend time educating yourself on all the material provided by this site. It will save you money in the long run.