Transitioning into multifamily

[Hoai Nguyen]

I am hoping to get guidance on pros and cons of transitioning from SFH and small multi(<4 units) to larger multifamily. We currently own 12 doors. 2 quadplexes and 4 SFH. One of the quadplex we are under rehab with a good ARV so it triggered the thought of selling and taking proceeds and rolling into multifamily anywhere from 8, 10, to 20+ units.

Should I just stick to small and mighty with SFH and small multi or take the leap and slowly transition to larger multifamily. We dont want thousands of units, just about 20-30k monthly passive income. Is it better to do a larger multifamily or keep the smaller portfolio. I currently have a property manager so I would like to keep property management and not self manage. Wife and I are both W2 earners.

[Kaylee Walterbach]

I'm a big fan of the "small and mighty" approach. (Check out Chad Carson's book with that exact title. He does a great job explaining this kind of long-term, low-risk investing and could help you decide if it's a good fit for you. He talks about paying down debt rather than acquiring more properties, which increases your cash flow in a more secure way.)

Still, multifamily has its advantages with economies of scale. Are you currently looking for a larger multifamily deal / have the funds to invest? It's definitely more doable in OKC with the lower prices.