New Investor Looking for Direction: Small Multifamily vs. Syndications

Los Angeles County, California
Investor Mindset
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New Investor Looking for Direction: Small Multifamily vs. Syndications

Martin ZitzelbergerPro Member
Member since 2025 · 17 posts · 15 votes

I’m an entrepreneur who has recently reached a point in my business where I can finally start investing in a meaningful way. I’ve been studying both active and passive investing for years, and now that I have real capital to deploy, I’m focused on finding the right paths to diversify, grow wealth responsibly, and protect it long-term.

I’m not risk-averse, but I’ll admit I’m a bit overwhelmed by the number of niches, strategies, and opportunities out there. I’m especially interested in real estate syndications, but I don’t yet feel confident in my ability to properly vet deals or identify reputable sponsors.

My wife and I are preparing to get started with small multifamily properties in the Midwest, although this strategy has risks and drawbacks as well. I’d love to hear from members who have stood at this same crossroads. Do these paths complement each other? Which typically comes first? And is the current market environment a smart place for a new investor to step into commercial syndications?

Books are helpful, but I’m hoping to connect with people who’ve actually navigated this successfully. I currently have no network so thanks in advance for any perspective you’re willing to share.

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Arman AhmedPro Member
Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 924 votes
10mo

@Martin Zitzelberger

Hey Martin,

Since you’re coming from LA, the Midwest is a great place to start with small multifamily, it’s more affordable, cash flow is stronger, and you can learn the ropes without the high entry costs you’d face in LA. Starting with B and C grade areas lets you get hands-on experience, build cash flow, and gain confidence before exploring syndications or larger passive deals. Focusing on undervalued, cash-flowing properties and a solid local team will set you up for long-term success.

[email protected]614-418-6081
3Reply
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  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    10mo

    @Martin Zitzelberger

    hello. i haven't invested in syndications and have no interest in doing so. so i can't help you there. i don't like the fact that there is neither control nor liquidity. if i want to give up control i'll pick an index fund or a REIT - at least then there's liquidity.

    happy to help with questions on SFHs or small multis in the midwest - that i am doing.  do you have a market in mind?  why not stay closer to LA?

    0Reply
  • Alfath AhmedBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
    10mo
    Quote from @Martin Zitzelberger:

    I’m an entrepreneur who has recently reached a point in my business where I can finally start investing in a meaningful way. I’ve been studying both active and passive investing for years, and now that I have real capital to deploy, I’m focused on finding the right paths to diversify, grow wealth responsibly, and protect it long-term.

    I’m not risk-averse, but I’ll admit I’m a bit overwhelmed by the number of niches, strategies, and opportunities out there. I’m especially interested in real estate syndications, but I don’t yet feel confident in my ability to properly vet deals or identify reputable sponsors.

    My wife and I are preparing to get started with small multifamily properties in the Midwest, although this strategy has risks and drawbacks as well. I’d love to hear from members who have stood at this same crossroads. Do these paths complement each other? Which typically comes first? And is the current market environment a smart place for a new investor to step into commercial syndications?

    Books are helpful, but I’m hoping to connect with people who’ve actually navigated this successfully. I currently have no network so thanks in advance for any perspective you’re willing to share.


     That's awesome man. You should look out of state since you guys are newer multifamily investors. A ton of los angeles investors buy in landlord-friendly states in the midwest. 

    Ton of tech companies are investing in the midwest like intel, google, amazon. Good market for cashflow and strong appreciation.

    [email protected]614-802-5698
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  • Josh C.Pro Member
    Property Manager · Indianapolis, IN · Member since 2010 · 1k+ posts · 1k+ votes
    10mo

    If you can afford a small multi family is a B or B+ you’ll be happy long term. I don’t think any of the syndicators are looking great at least in the short term (less than 5 years) with labor costs and rates where they are. All the stories here on BP are “my syndication stopped paying distributions” not “I’m making so much money totally passive!”

    Don’t get sucked into the ghetto duplexes in the Midwest. (I’m in Indianapolis and there are plenty of those here) A nice area where you or at least you’d let your kids live is more expensive upfront, but more profitable over a 10 year span.

    2Reply
  • Martin ZitzelbergerPro Member
    OP
    Member since 2025 · 17 posts · 15 votes
    10mo

    To answer both @Josh C. and @Nicholas L., I’m not locked into the Midwest because I’m chasing low prices. From what I’ve learned, cash flow tends to scale with each market, even those with higher entry costs. Ideally, I would love to invest locally and plan to at some point, but the math right now makes the Midwest appealing for the following reasons.

    My income comes in through larger quarterly dividend distributions, so the strategy I’ve been considering is using those to acquire 1–3 small multifamily properties (2–4 units) each year in solid B+ areas. At the moment, we’re exploring Northwest Arkansas and the outskirts of Columbus, Ohio. We haven’t identified any specific properties yet (we’re still at square one) but the long-term idea is to build a steady portfolio over the next decade. Doing something similar locally would limit us to roughly one single-family purchase per year or require saving for several years before we could afford a multifamily, or potentially need a partner. 

    That said, I’m open to good opportunities wherever they are. We’ve been reading, listening, and learning a lot, and many books paint out-of-state investing as a strong fit for someone in my situation. But to get feedback from people actually doing this is far more valuable, and I need to be challenged, so I really appreciate your insight.

    1Reply
  • Arman AhmedPro Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 924 votes
    10mo

    @Martin Zitzelberger

    Hey Martin,

    Since you’re coming from LA, the Midwest is a great place to start with small multifamily, it’s more affordable, cash flow is stronger, and you can learn the ropes without the high entry costs you’d face in LA. Starting with B and C grade areas lets you get hands-on experience, build cash flow, and gain confidence before exploring syndications or larger passive deals. Focusing on undervalued, cash-flowing properties and a solid local team will set you up for long-term success.

    [email protected]614-418-6081
    3Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    10mo
    Quote from @Martin Zitzelberger:

    I’m an entrepreneur who has recently reached a point in my business where I can finally start investing in a meaningful way. I’ve been studying both active and passive investing for years, and now that I have real capital to deploy, I’m focused on finding the right paths to diversify, grow wealth responsibly, and protect it long-term.

    I’m not risk-averse, but I’ll admit I’m a bit overwhelmed by the number of niches, strategies, and opportunities out there. I’m especially interested in real estate syndications, but I don’t yet feel confident in my ability to properly vet deals or identify reputable sponsors.

    My wife and I are preparing to get started with small multifamily properties in the Midwest, although this strategy has risks and drawbacks as well. I’d love to hear from members who have stood at this same crossroads. Do these paths complement each other? Which typically comes first? And is the current market environment a smart place for a new investor to step into commercial syndications?

    Books are helpful, but I’m hoping to connect with people who’ve actually navigated this successfully. I currently have no network so thanks in advance for any perspective you’re willing to share.

    Hey Martin! It sounds like you’ve done a lot of homework and are ready to put real capital to work, which is awesome. For someone starting with small multifamily properties in the Midwest, I’d say that can be a great way to get hands-on experience and build cash flow while learning how to manage tenants, expenses, and the nuances of real estate investing before jumping into syndications. Columbus, Ohio is a market I’d definitely look at for this—properties in the $120K–180K range can hit the 1% rule and cash flow immediately, and the macro picture here is strong with population growth, job growth, and big companies like Intel, Amazon, Google, Facebook, Honda, Microsoft, and LG expanding or relocating, which keeps rental demand high and long-term appreciation potential solid. Starting with smaller deals gives you confidence and context for evaluating bigger commercial syndications later, and it also helps you build a network of agents, lenders, and property managers who can eventually point you toward reputable sponsors. This approach lets you grow wealth responsibly, minimize risk while learning, and set yourself up to participate in bigger syndication deals down the road. Happy to connect and answer any questions you have!

    [email protected]614-300-7535
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  • G. Brian DavisPro Member
    Investor · Hatboro, PA · Member since 2016 · 2k+ posts · 854 votes
    10mo

    Hi @Martin Zitzelberger nice to meet you. Most people judge syndications simply because they don’t understand how they work, and many jump in blind without knowing how to vet sponsors correctly or stress-test deals. But every strategy has risk: tenants can stop paying, properties can get damaged, flips can blow up from hidden issues or bad contractors, and syndications can underperform.

    The best thing you can do right now is learn how operators actually make money, ask them about their worst deals, and get comfortable running your own stress tests so you’re not relying only on the pitch deck. At the same time, keep building relationships, even a small network of experienced investors will accelerate your learning curve more than any book.

    Both small multifamily and syndications can work together if you approach them with patience and due diligence. Hands on ownership teaches you how real estate behaves in the real world, while syndications help you scale into markets and asset types you can’t take down alone. It’s less about choosing the perfect path and more about understanding the risks clearly so you’re never investing blind.

    2Reply
  • Kerlous TadresBusiness Member
    Realtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes
    10mo

    Hey @Martin Zitzelberger, I’ve seen a lot of investors start where you are, and the overwhelm is totally normal. If it were me, I’d start with a small Midwest multifamily first because it gives you real reps and makes you way better at spotting good (and bad) syndications later. Syndications can absolutely complement that strategy, but they’re easier to vet once you understand how the numbers work in real life. Take your time, build relationships with operators, and treat networking like part of the investment.

    [email protected]614-490-1163
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  • Martin ZitzelbergerPro Member
    OP
    Member since 2025 · 17 posts · 15 votes
    10mo

    I appreciate all these responses, very helpful for my position! I am looking to learn avoid as many rookie mistakes as possible.

    1Reply
  • Ethan Rolnick
    New to Real Estate · Atlanta, GA · Member since 2025 · 63 posts · 20 votes
    10mo

    @Martin Zitzelberger @Kerlous Tadres @Jimmy Lieu

    0Reply
  • Ethan Rolnick
    New to Real Estate · Atlanta, GA · Member since 2025 · 63 posts · 20 votes
    10mo

    Let's connect on LinkedIn!

    0Reply
  • Denise SuppleeBusiness Member
    Realtor · Willow Grove, PA · Member since 2017 · 979 posts · 642 votes
    10mo

    Hi @Martin Zitzelberger nice to meet you here on BP. Most people feel overwhelmed at this stage because there are so many strategies and each comes with its own risks. For context, what I do is something similar to syndications but not exactly the same. I invest alongside my group where we put smaller amounts, usually around 5k, into multiple deals so we can spread risk instead of committing big chunks to one operator. We get together weekly to talk investing, and 1-2 times a month we review real deals and operators as a group. You’re welcome to listen in anytime if you just want to get a feel for how people analyze deals in real time.

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  • Marc RiceBusiness Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
    10mo
    Quote from @Martin Zitzelberger:

    I’m an entrepreneur who has recently reached a point in my business where I can finally start investing in a meaningful way. I’ve been studying both active and passive investing for years, and now that I have real capital to deploy, I’m focused on finding the right paths to diversify, grow wealth responsibly, and protect it long-term.

    I’m not risk-averse, but I’ll admit I’m a bit overwhelmed by the number of niches, strategies, and opportunities out there. I’m especially interested in real estate syndications, but I don’t yet feel confident in my ability to properly vet deals or identify reputable sponsors.

    My wife and I are preparing to get started with small multifamily properties in the Midwest, although this strategy has risks and drawbacks as well. I’d love to hear from members who have stood at this same crossroads. Do these paths complement each other? Which typically comes first? And is the current market environment a smart place for a new investor to step into commercial syndications?

    Books are helpful, but I’m hoping to connect with people who’ve actually navigated this successfully. I currently have no network so thanks in advance for any perspective you’re willing to share.

    Hi Martin, it's currently a buyer's market in the Midwest. I would go for smaller multi-family properties and ensure the ROI first. Happy to help you with all my experience and connections!
    [email protected]614-363-2787
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    1Reply
  • Rosston Smith
    Investor · Warner Robins, GA · Member since 2015 · 1k+ posts · 490 votes
    10mo

    I'd recommend steering towards MFH. 

    2Reply
  • Ethan Rolnick
    New to Real Estate · Atlanta, GA · Member since 2025 · 63 posts · 20 votes
    10mo

    @Jimmy Lieu could we connect on LinkedIn? Do you have a LinkedIn account?

    0Reply
  • Ethan Rolnick
    New to Real Estate · Atlanta, GA · Member since 2025 · 63 posts · 20 votes
    10mo

    @Marc Rice do you have a LinkedIn account? I would love to connect with you!

    0Reply
  • Ethan Rolnick
    New to Real Estate · Atlanta, GA · Member since 2025 · 63 posts · 20 votes
    10mo

    @G. Brian Davis could we connect further on LinkedIn? 

    1Reply
    • G. Brian DavisPro Member
      Investor · Hatboro, PA · Member since 2016 · 2k+ posts · 854 votes
      10mo
      Quote from @Ethan Rolnick:

      @G. Brian Davis could we connect further on LinkedIn? 


       Yeah sure! You can find me by name or search Sparkrental and you'll find me that way.

      1Reply
  • Min ZhangBusiness Member
    Real Estate Agent · Member since 2022 · 1k+ posts · 1k+ votes
    10mo

    Totally get where you’re coming from, Martin! Once you finally have capital to deploy, the number of options can feel overwhelming. Syndications and small multifamily can work together, but most people I’ve seen start with a smaller property first. It helps you learn how operations, financing, and returns actually work before trusting a sponsor with a larger check. Syndications are great, but the hardest part is vetting the operator, not the deal itself.

    The Midwest is a solid place to get started with a small multifamily if you want something more hands on. It gives you clearer numbers and more control, while syndications lean more passive. Happy to trade some notes!

    [email protected]614-412-2912
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  • Polo VazquezPro Member
    Real Estate Agent · McAllen, TX · Member since 2017 · 382 posts · 281 votes
    10mo

    Hello. I'm not a very big fan of syndications. I feel like the operators are the only ones really winning. I'm a big fan of small multifamily or even single family residences as rentals. When your portfolio is small, they can be very easy to manage. It is also really easy to get a mortgage on them at a very good price. I have a lot of investors who self manage from Mexico or other states. Everyone here says the midwest is the way to go but I'm still strong believer in Texas since we have one of the best economies in the US. The Rio Grande Valley is currently swamped with fourplexes so right now would be the time to throw some lowball offers and snatch one at a good price.

    Good luck in your journey!

    1Reply
  • Cory Booth
    Investor · Long Island · Member since 2025 · 9 posts · 6 votes
    10mo

    Hey Martin,

    I saw your post in Investor Mindset and really connected with what you said. A lot of people don’t admit it, but the early stages of multifamily can feel overwhelming — too many strategies, too many voices, and it’s hard to know who’s legit.

    I’m actively working on multifamily acquisitions myself, mostly through creative structures like seller financing, DSCR loans, and partner capital. So I’ve had to learn exactly how to evaluate deals and operators the right way.

    If you ever want to compare notes, talk through your first few opportunities, or just bounce ideas off someone who’s in the trenches too, I’d be glad to connect. No pressure or pitch — just two people trying to grow in the space.

    Either way, wishing you and your wife a ton of success getting started. Let me know if you ever want to talk shop.

    1Reply
  • Ethan Rolnick
    New to Real Estate · Atlanta, GA · Member since 2025 · 63 posts · 20 votes
    10mo

    @Cory Booth I would love to connect with you on LinkedIn. My account name is Ethan Rolnick!

    0Reply
  • Ethan Rolnick
    New to Real Estate · Atlanta, GA · Member since 2025 · 63 posts · 20 votes
    10mo

    @Polo Vazquez could we connect on LinkedIn? My account name is Ethan Rolnick!

    0Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    10mo
    Quote from @Martin Zitzelberger:

    I’m an entrepreneur who has recently reached a point in my business where I can finally start investing in a meaningful way. I’ve been studying both active and passive investing for years, and now that I have real capital to deploy, I’m focused on finding the right paths to diversify, grow wealth responsibly, and protect it long-term.

    I’m not risk-averse, but I’ll admit I’m a bit overwhelmed by the number of niches, strategies, and opportunities out there. I’m especially interested in real estate syndications, but I don’t yet feel confident in my ability to properly vet deals or identify reputable sponsors.

    My wife and I are preparing to get started with small multifamily properties in the Midwest, although this strategy has risks and drawbacks as well. I’d love to hear from members who have stood at this same crossroads. Do these paths complement each other? Which typically comes first? And is the current market environment a smart place for a new investor to step into commercial syndications?

    Books are helpful, but I’m hoping to connect with people who’ve actually navigated this successfully. I currently have no network so thanks in advance for any perspective you’re willing to share.


     Happy to share experience. Its very difficult to tell someone what they should go in without knowing them, as its like telling a child what to go to college for without knowing what their skillset is. The time commitment, experience, knowledge in renovation vs finance etc. all play a huge part into understanding what path to go down, and even realize if real estate is the right path. I chose real estate and a good friend (same major) chose to go into another field. In 2012 he went to work for NVIDIA. he is now retired, I am in real estaet. I  cannot complain how I did, but he definitely did better. My point, there are many roads, and getting knowledge from people is great, and that will let you choose your path - do not let someone choose it for you

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  • Polo VazquezPro Member
    Real Estate Agent · McAllen, TX · Member since 2017 · 382 posts · 281 votes
    10mo

    @Ethan Rolnick I do not use linked in very much. You are welcome to add me on social media ocan even contact me directly at any time. I'm always glad to help

    1Reply
  • Ethan Rolnick
    New to Real Estate · Atlanta, GA · Member since 2025 · 63 posts · 20 votes
    10mo

    @Polo Vazquez I just sent you a colleague request!

    0Reply
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