Updated over 9 years ago on . Most recent reply
Triplex/fourplex vs fiveplex and greater
Hi all,
I live in Toronto Canada and I'm a newbie to investing. The niche I like best is multifamily properties. The way it works here is anything greater than four units will be considered commercial.
I'm trying to keep in mind my exit strategy so I'm unsure which would be the better investment. Presently our market is red hot so this is where the dilemma lies. If I purchase a tri or a fourplex the market will dictate the selling price, however, the buyer pool is larger. If I purchase a five unit or higher the market doesn't play as big a factor. Instead cash flow is the primary factor (basically the better the return the higher it can be sold for). However on the other hand the buyer pool would be far less.
If I found both properties that cash flowed well which is the better investment.
Thanks!



