Newbie to BP- switch from SFH to multifamily

[Mark-Anthony Villaflor]

Hi all,
This is my first post yay! Just started investing in real estate a couple years ago. Own 3 SFHs and a 4th currently under contract in the states and 2 condos in the Philippines. Im looking at expanding my portfolio and have thought about having my 5th property in the states be a multi-family (probably something small like a duplex/triplex).

What advice would you have for someone knew to multifam especially with respect to the market right now?

What are the differences in financing?

What's your typical percentage of income for a contingency fund for repairs and maintenance?

Also, I'm in China so I'm wondering about issues being remote?

Thanks,
Mark

[Joel Owens]

Hi Mark,

Are all your properties in the states in the same location??

How do you handle things when problems arise from afar??

Micro markets vary by state so no way of knowing what kind of cap and cash on cash you are searching for.

I have never been a big fan of 2 to 4 units. You are at the mercy of other investors with surrounding buildings that affect your investment. That is hard enough to control when you live local but really hard to control out of state and even more so for a foreign investor.

2 to 4 units still falls under residential lending. It's when you go 5 units or more where the financing structure and loans offered significantly change.