All Forum Posts by: Johnny Lynum

When deciding which market segment to target in real estate—whether it's multifamily (MF) properties or single-family homes (SFH)—it's crucial to consider the dynamics of the competitive landscape and your own financial position.

In general, multifamily properties are a popular choice for investors because they offer the potential for cash flow, scalability, and the ability to amortize debt across multiple units. However investors are often able to outbid others for multifamily properties due to their ability to make cash offers, which gives them a significant competitive advantage. Cash offers are often particularly appealing to sellers because they eliminate the uncertainties that come with financing, such as loan approval or appraisal issues. As a result, competing against seasoned investors in the multifamily space can be challenging, especially for newcomers or those with less capital to deploy.

On the other hand, single-family homes (SFH) are typically the go-to choice for primary homebuyers, who are not always as cash-rich as investors but can still secure financing through conventional loans. This is where the strategy of offering a higher down payment—like 25%—can make a big difference. A 25% down payment is not only attractive to sellers but can also help you stand out in a market where many buyers are putting down smaller amounts (e.g., 5% to 20%). Sellers often favor buyers who can make larger down payments, as it indicates stronger financial backing and reduces the risk of the deal falling through due to financing issues.

Additionally, SFH properties are more accessible to a wider range of buyers, including first-time homebuyers and families, which can lead to less direct competition from institutional investors. Unlike multifamily properties, SFHs are typically less appealing to large-scale investors who are focused on rental income and higher-density units. This means there may be less competition from professional investors, especially in areas where the demand for owner-occupied homes is strong.

In short, if you are just entering the real estate market and don’t yet have the capital to compete directly with investors for multifamily properties, focusing on single-family homes could be a more strategic choice. By offering a larger down payment, you can position yourself as a more attractive buyer and avoid some of the challenges associated with competing in the more investor-heavy multifamily market. Over time, as you gain more experience and capital, you can consider expanding into multifamily properties once you've built up a solid foundation in real estate investing.

Great breakdown! Thank you! This hits home, especially for anyone just starting out in real estate. As someone with a military background, I’ve always approached investing like a mission—know your strengths, assess the terrain, and execute strategically.

For me, starting with SFHs felt like the “crawl” phase before running into multifamily. It’s a solid way to build experience and confidence without diving straight into heavy competition with big players.

Question: What’s been your biggest challenge in deciding which market to focus on?

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Quote from @Shamar Gregg:

Quote from @Johnny Lynum:

If you had the chance to invest in your first property, would you choose a single-family home or a multifamily property? I’ve heard arguments for both, but I’m curious—what’s your preference, and why?

Personally, I started my investment journey with multifamily properties before moving into single-family homes. I recommend starting with multifamily if you're just getting started with limited capital. For example, I used an FHA loan (3.5% down) to purchase a 4-unit property, which allowed me to put down a low deposit while still generating strong cash flow from multiple rental units. Same can be done with VA loans and Conventional 5%.

Multifamily properties provide the advantage of multiple income streams, which can help offset vacancies and reduce risk. However, once I transitioned into single-family homes, I realized that the cash flow difference wasn’t as significant, but the management became simpler. With a single-family, you have one property, which means fewer moving parts.

If you have the funds to scale, I would recommend moving toward single-family homes, but if you're just starting out, multifamily can be a smarter choice. It’s the "bigger bird, smaller stone" approach: multifamily offers more immediate cash flow and flexibility when you're getting started, while single-family homes can provide more simplicity and scalability once you've built up some capital.

Love this approach—starting with MF is solid, especially with the added cash flow from multiple units! Totally agree about the "bigger bird, smaller stone" analogy (can I borrow this?)

I went the VA loan route myself, and the ability to house hack while building wealth was a game changer. What was the most surprising thing you learned when transitioning?

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Quote from @JD Martin:

If I was starting from scratch, I would buy a duplex/triplex/quadplex, live in the crappiest unit and rent the others out. You're feeding 2 dogs with one biscuit by taking care of your living expenses and generating rental income at the same time, and by living in the house and keeping it to 4, you generally get exemptions on things that might bother you to live with (IE you can choose whomever you want as your tenants without running afoul of fair housing laws). You also get access to conventional financing.

If I was not starting from scratch, like I did myself, I would buy SFHs because I prefer their long-term flexibility, relative scarcity, and multiple exit strategies to MFH. It's also easier to isolate and manage tenants, because they don't have any affect on each other as they do in MFH. There are more duplicity costs with SFH - more roofs, more yards, etc - but I have had and managed both and homes are better in my market.

Solid strategy! 💯 —house hacking for the win. 💪

I’m curious though—what’s been your biggest challenge managing tenants in multifamily vs. single-family properties? Any tips for someone weighing those options? Thanks!

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It’s awesome to see your excitement @Joe Casey—this journey can truly be life-changing.

As someone who started out while serving in the military, here’s some advice I wish I had early on: take action, even if it’s small. Analyze deals, build your network, and educate yourself constantly.

If you have access to unique resources (like a VA loan, FHA Loan, or 401K), use them to your advantage! That's how I got started—with little to no money out of pocket. And don't overthink—your first deal doesn't have to be perfect; it just has to get you in the game.

You’ve already taken a big step by asking for guidance, so keep that curiosity alive and stay consistent —let’s crush it! 💪🏽🏡

1 Vote

Cedar Rapids, Iowa

Welcome! —half the battle is the mindset, and you’ve got that nailed.

Start with the basics: understand your market, run the numbers, and don’t be afraid to ask questions. Every experienced investor started where you are—hungry to learn and ready to grow.

Lean on mentors, network like crazy, and stay consistent. You’ve got this! Cheering for your success! 🙌💪

1 Vote

Saint Louis, Missouri

Hey @Andrea Davis-TarantinoCongrats on starting this journey with your dad—exciting stuff! 🙌 For your partner, here are options to consider: Interest (fixed return, less risk). Profit split (20–50% if the deal does well). For your friend (why not partner with her?.. just curious) - Flat fee for advice or a small profit cut (5–10%) if she’s hands-on. Get it all in writing to keep things smooth. You’ve got this! 💪

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Hey @Anne Christensen! That’s solid prep! 🎯 I get it, though—pulling the trigger on the first deal feels like stepping off the ledge. Here’s the deal (pun intended):

Run the Numbers: If the deal makes sense on paper—cash flow, ROI, and all—trust the math, not just your gut. Use tools like a deal analyzer to double-check.
Start Small: It doesn’t have to be a grand slam. A solid single will build your confidence and teach you a ton.
Know Your Exit Plan: Have a backup—rental, flip, or sell later. That safety net can ease the fear.
Tap Your Network: Got a mentor or someone in your circle who's done this before? Run it by them. Fresh eyes help.
Mindset Check: You're never going to know everything before you start. Make a move, learn, and pivot as needed. Worst case? You gain experience for the next one.

Fear’s just a sign you’re growing. Make that call—future-you will thank you! 💪

You’ve got this! Let us know when you close your first deal! What markets/strategies have you been considering?

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Washington, DC

Hey @Joshua Wright, great share! Your background in construction and problem-solving mindset is a perfect fit for real estate. That entrepreneurial fire you’ve got will go far. I do have some investment properties in Panama City. I heard Tampa Bay’s a great place to dive in—lots of opportunity! Would love to connect.

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Tampa, Florida

Hey, @Dominique Rhodeswelcome! As a fellow real estate investor (with my wife on board too), I’m pumped to see you and your wife diving into the Detroit market—heard there’s a lot of opportunity there for rentals! My take: Gather intel on the area (neighborhoods, tenant demand, property management), have a game plan for your numbers (cash flow, maintenance reserves), and adapt as you go. This forum is great and will help along the way, so don’t hesitate to ask questions or share wins. Wishing you both success! 💪

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Detroit, Michigan

All Forum Posts by: Johnny Lynum

Johnny Lynum has started 22 posts and replied 222 times.

Post: Multifamily vs. Single-Family—What’s Your Take?

Post: Multifamily vs. Single-Family—What’s Your Take?

Post: Multifamily vs. Single-Family—What’s Your Take?

Post: Millionaire Wealth Blueprint - December Cohort

Join ONLY IF YOU WANT To Learn About:

Post: I am new and I want to learn more

Post: New to Investing

Post: Newbie over here!

Post: Analysis Paralysis - Help Needed to Make My First Deal

Post: Joshua Wright Introduction

Post: Hello, Looking forward to connecting and learning

Johnny Lynum has started 22 posts and replied 222 times.

Biggerpockets Logo Post: Multifamily vs. Single-Family—What’s Your Take?

Biggerpockets Logo Post: Multifamily vs. Single-Family—What’s Your Take?

Biggerpockets Logo Post: Multifamily vs. Single-Family—What’s Your Take?

Biggerpockets Logo Post: Millionaire Wealth Blueprint - December Cohort

Join ONLY IF YOU WANT To Learn About:

Biggerpockets Logo Post: I am new and I want to learn more

Biggerpockets Logo Post: New to Investing

Biggerpockets Logo Post: Newbie over here!

Biggerpockets Logo Post: Analysis Paralysis - Help Needed to Make My First Deal

Biggerpockets Logo Post: Joshua Wright Introduction

Biggerpockets Logo Post: Hello, Looking forward to connecting and learning

Post: Multifamily vs. Single-Family—What’s Your Take?

Post: Multifamily vs. Single-Family—What’s Your Take?

Post: Multifamily vs. Single-Family—What’s Your Take?

Post: Millionaire Wealth Blueprint - December Cohort

Post: I am new and I want to learn more

Post: New to Investing

Post: Newbie over here!

Post: Analysis Paralysis - Help Needed to Make My First Deal

Post: Joshua Wright Introduction

Post: Hello, Looking forward to connecting and learning