First Time Investor - SFR or Multiunit?

[Max Uyeda]

I am looking to start a real estate portfolio and am wondering if I should start with SFR or multiunit. I just finished Brandon's book "book on rental property investing." It highlights challenges with investing out of state. I live in Hawaii, where none of the math looks like it will make sense to invest here. My plan is to invest out of state with a very strong management group. I was looking into REI Nation, and have seen good reviews, but they only do SFR and I'm wondering if my capitol would be better spent on multiunit instead of SFR. I have about $400,000 to invest. I could probably get up to $600,000 with family help. Any thoughts on if I should go the multi-SFR refinance route, or if I should use that as a down payment for a larger multiunit property? I am a complete noob, having only become interested in RE investing a couple weeks ago and Brandon's book is the only knowledge I have on it. Any advice would be great, thank you.
Also, goal is long term holding to build retirement income. I'm currently 34. 

[Greg Cadwallader]

Quote from @Melissa Justice:

@Max Uyeda, Hey Max!

You're asking all the right questions, and you're off to a great start by educating yourself early. Given your goals, experience, and budget, starting with SFRs is a strong move. Here's why:

Why SFR is Ideal for You:
Easier to Manage Remotely – Especially with a solid PM team.
Better Tenant Quality – SFRs attract longer-term, more stable tenants.
More Liquid & Flexible – Easier resale or refinance options than multi units.
Scalable with Less Risk – With $400K–$600K, you could buy 3–4 quality SFRs in stable markets and diversify across locations.

Why Multiunits May Be Better Later:
More complex management and maintenance.
Higher learning curve and tougher financing (especially 5+ units).
Less flexibility on exit or refinancing.

My suggestion would be to start with 2–3 turnkey SFRs in Class B/B+ areas with strong appreciation and low maintenance in markets like Memphis, Dallas suburbs, Birmingham, Cleveland or Ocala, FL.

Once seasoned, refi and consider a multiunit if still aligned with your goals.

You're in a great spot to start. Build confidence with SFRs, then scale smart. Let me know if you want to chat more about any specific markets etc. Always here to share!

Best of luck!

Great insight here. Being in the Orlando market and having built properties in the Ocala market I will speak to this. You can find good new construction houses from low 200's that will cashflow and have less stress on maintenance being out of state. I know multiple investors that started building SFR and now are on to Duplexes with plans to continually move to more units. Keep it simple as you get to know the areas and then grow.