Jumping from SFRs to Multifamily—What’s Your Playbook?

Question

I’ve been chatting with a bunch of landlords lately who are ready to scale up from single-family rentals (SFRs) into multifamily for better cash flow and efficiency. From my side as the CFO of a developer, GC, and property manager, I see a 12-24 unit building(s) as the sweet spot to start—big enough for economies of scale, but not so huge you’re drowning in management complexity.

Case in point: we’ve recently wrapped up two 12-unit apartment buildings, brand new construction and cash flow ready from day one. It’s the kind of deal I’d point an SFR investor toward if they’re looking to level up without jumping straight into a 50-200-unit beast. Our team’s handling stabilization, so it’s basically turnkey—perfect for someone who wants rental income without the chaos of a fixer-upper.

For those of you who’ve made the leap from SFRs to multifamily, what was your first deal like? Did you go small (like 12-24 units) or dive into something bigger? Any tips for newbies on underwriting, finding tenants, or managing the transition? I’d love to hear your playbooks—always looking to learn from this community!

If anyone’s curious about that 12-24-unit deal, feel free to DM me for the rundown. Happy to share numbers or just talk shop!

Mike

Jack Pasmore · Answer

@Mike Rutherford ,

Thanks for the detailed response and the pitch. Your approach sounds solid! I can see the value in what you’re doing in the rural southeast—new construction in those areas has a lot of untapped potential, and I like how you’re handling the financing with Fannie Mae assumable loans and light debt. That’s a smart play, especially with the kind of turnkey product you’re offering.

As for our 40-100 unit deals, we’re looking at a mix of syndication and private money for financing. We're leaning into both to scale efficiently. We’re focusing on Class B & C properties in select markets and working to get the right balance between operational efficiency and long-term growth. I definitely see the opportunity for us to collaborate and leverage our different strengths. We could be a great fit.

I’d love to hop on a phone call one of these days and deep dive into this together. I think there’s some real synergy here, and we could come up with a solid plan to push these rural southeast projects forward. Shoot me a DM, let's set something up soon!

Looking forward to the chat.

Mike Rutherford · Answer

Hey @Jack Pasmore

Appreciate the congrats and the enthusiasm—those 12-unit builds were a labor of love, and it’s awesome to hear you vibe with the new construction angle! You’re so right about the advantages stacking up—market rents from day one, smoother financing, cost segregation goodies, and exit flexibility. It’s like handing SFR investors a cheat code to multifamily. I’m Mike Rutherford, CFO at Ethan Jackson Investments, by the way—thrilled to chat with someone scaling as fast as you!

Your two 40-100 unit deals closing this year? That’s next-level—major props! We’re on a similar wavelength, pumping out Class B multifamily (12-200+ units) in rural southeast US—rural Georgia, Alabama, Louisiana. I’m with you 100% on 12-24 units being the sweet spot for SFR folks stepping up—big enough for scale, small enough to keep sane. And yeah, team’s the dealbreaker—our in-house management and tight underwriting keep us at 10% cash-on-cash, while I’ve seen quads crash from sloppy execution. Crazy’s an understatement!

You want to talk structuring? Happy to spill—our 12-24-unit new construction builds on cheap rural land. Rents hit $850-$1,000/month/unit, stabilized fast with pre-leasing. We cash-buy or use light debt, then refi or hold once cash flow’s rolling. Investors love the turnkey vibe—we can even secure a Fannie Mae assumable loan. How are you tackling your 40-100 unit closings—syndication, private money? I’d love to hear your playbook, especially since you’re eyeing new builds soon.

Here’s a pitch: let’s collab on a rural southeast project. We deliver turnkey multifamily—cash-flowing, fully managed—and your big-unit scaling chops could slot right in. Think $1M-$3M deals, $30-$60k/annual cash flow, 6-8% caps, and 10% returns. A JV could fast-track your construction goals while we tap your experience. Sound worth a chat? DM me or let’s jump on a call—I’d kill to swap more insights with someone deep in the game.

Thanks for the reply—can’t wait to hear how your deals are shaping up!

Jack Pasmore · Answer

@Mike Rutherford

Hey,

Congrats on wrapping up those 12-unit builds—new construction multifamily is a power move, and having a stabilized, cash-flow-ready asset from day one is a huge advantage. When going this route, there are so many angles that are in your favor that include, but are not limited to at market rents, financing, cost segregation, and your exit strategy options.

Our company is in the process of closing on two 40-100 unit deals this year, so we’re scaling up fast. I agree—12-24 units is a great jump for SFR investors looking to step into multifamily without getting overwhelmed. That said, no matter the size of the property, the right team makes or breaks the deal—experienced management, solid underwriting, and a clear game plan determine how well the property performs long-term. I've seen mismanaged quadplexes that foreclose. It's crazy!

Would love to connect and talk more shop, especially on how you’re structuring these new builds. That's something that we're looking to break into within the next few years. Always good to exchange insights with someone deep in the development space!

Jack