I had little capital to start off with, so I decided to find a 4 family to rehab and live in. I used an FHA loan and was able to put 3% down instead of the normal 20%-25%. I also took a 203K rehab loan as part of the package to use for renovations.
Since I choose to renovate, it gave me rehab experience and an instant equity position. Becuase I lived in it, I also gained valuable landlord experience. To start, I managed everything myself for a cash flow boost.
It's been a few years now, and the property is still doing well for me. Just make sure you factor in all the costs and expenses before you buy. I could've really sunk myself if I didn't have a good grasp on the numbers.
by the by, I had an investor buy a 4-plex this year, and his lender would not let him put the property into a LLC. He couldn't get around it, and he was a lawyer, too. may have just been his particular lender, but ask the question when it's time to borrow.
I had a quote this week from a lender for a 4.5%, owner occupied loan on a 4-plex. How can anybody not love thos terms?
good luck
victor