Small Multi-Family vs. Single-Family for a First Out-of-State Deal?

[Christopher Rubio]

Hi BP community,

I’m a new investor based in California, looking to start my portfolio through out-of-state investing. My target is the $80K–$125K range in landlord-friendly markets with steady job growth. I’m most interested in BRRRR and buy-and-hold rentals, and I keep going back and forth between starting with a small multi-family (duplex/triplex/fourplex) or a single-family rental.

Here’s where I’m stuck:

• SFRs seem easier to manage and may be less intimidating for a first deal, but the cash flow might be tighter.
• Small multis could bring stronger cash flow and efficiency, but I’ve heard they can be tougher to finance, and vacancies or tenant issues could hit harder if I don’t have a solid team yet.

For those of you who’ve been down this road already:

• Which one did you start with, and why?
• Looking back, would you do it the same way?
• What do you think is the best path for someone investing out of state for the first time?

I’d love to hear your experiences and lessons learned — it’ll help me take action with more clarity and confidence.

Thanks in advance,
Christopher

[Corby Goade]

If you are going to buy and hold, MFH is a better long term choice, but you are right to be concened, if not local, your team and resources will make or break the deal. 

Have you connected with a realtor in your target market who specializes in investments and has relationships you can tap in to? That's the best way to start.

Vet your agent well- lots of jokers out there. Make sure they invest themselves, regularly help other people invest and they don't disappear after they get a check. Read reviews, get personal referrals.