Investor · Dallas, TX · Member since 2018 · 254 posts · 48 votes
Good evening BP,
What are the positives and negatives of sticking to BRRRRing ONLY multi-family (2-4 units) homes?
The reason why I want to stick to this strategy is that if I lose a tenant I know that I won't be left with the full mortgage payment to pay like I would if I owned pure SFR.
On the downside, I know it is not easy to determine COMPS for multi-family homes because sometimes there won't be any mult-family homes around to try to figure out the ARV of the property.
Am I making a mistaking by not considering SFR to my portfolio?
Plexes cash flow great but generally don't appreciate as well as SF, partly because they don't have many comps.
If you are concerned about vacancy hurting cash flow, once you have a few doors, adding a SF rental is actually easier to manage than a plex because it is clear who should mow the lawn and if the neighbors are loud you call the cops not the landlord.
Beyond that, consider true multi-family (5+ units = apartments)