Better to buy two fourplexes or one small apartment building?

[James Brewer]

I'm new to REI and targeting either two fourplexes or one small apartment building out of state as my first buy and hold properties? Is a 6-8 unit property better to help me scale and grow the business faster to eventually more properties, or is picking up two fourplexes just as good?

I've heard that apartment buildings are often better built as commercial properties compared to typical 2/3/4 multi-family homes purpose built for residential. I'm also familiar with the major difference between residential and commercial loans once you setup up into anything 5 units or more and that it's a more complicated loan process based on how the property operates as a business. I've heard "the more doors the better".

Thanks, this is my first post!

James

[Bjorn Ahlblad]

If everything were equal, and that is never the case, the two fours would give you more flexibility in terms of sale or re-fi. I have a 12 unit and two duplexes. On a return measure the 12 flows so much more cash per dollar invested than the duplexes. I spend a lot less per door to maintain etc. The laundry more than pays for for itself. So for me the apartment building wins hands down. More doors under one roof works better for me.