Most real estate investors who are considering getting in to multifamily investing think they need to cut their teeth on single family houses (SFH’s) or duplexes before considering larger buildings.
However, as I’ve argued many times before, this is not necessary. It’s actually a myth – one that may keep you from achieving your REAL financial goals for years.
The real issue is the current size of your comfort zone. Most of us have a hard time seeing beyond it. So if you’ve never done a house flip before but you’ve seen it done on TV, you might be able to visualize yourself flipping a house as your first foray into real estate investing.
But going straight for a 15-unit multifamily building? I don’t think so.
In my article “The Simple Way to Gain Experience For Multifamily Investing Without Buying Single Family Homes,” I talk about several tips for expanding your comfort zone WITHOUT doing SFH’s first.
I would rather help you expand your mind over the course of 30 days than have you embark on some real estate strategy for the next few years that won’t really bring you any closer to your goals.
If you’re one of my students learning to get started with multifamily investing, then that’s the first thing we’ll work on: to expand your comfort zone so that you’ll go after the biggest building possible.
Related Article: 5 Reasons Why Bigger is Better with Apartment Building Investing.
If, despite my best efforts, you just can’t see yourself doing a 15-unit building right from the start and you’re about to give up your dream of financial independence, then I would advise you to do a small deal, like a duplex.
I’ve said it.
It goes against my entire being, BUT doing a small deal is better than doing no deal at all.
If you won’t go big, at least go small.
I interviewed Jay Boyle and Drew Kniffin on podcasts recently, and what was interesting about both of them is they both got started with small multifamily buildings before going bigger.
Had I known them several years ago, I’m certain I could have accelerated their progress! But at least they got started. And even though it took Jay TWO YEARS to buy a duplex, he closed on a 36-unit 6 months after that and he’s got a 96-unit in the pipeline.
The point is this: better to do a small deal than sit on the sidelines.
Your first step should be to work on your mindset. If you follow some of the tips in the article “The Simple Way to Gain Experience For Multifamily Investing Without Buying Single Family Homes,” you’ll be amazed at how far you can expand your comfort zone WITHOUT first investing in SFH’s or duplexes.
If despite this exercise you still feel you need to get started with a duplex or triplex, then fine.
I will be your biggest supporter.
If you own any multifamily property, how did YOU get started? Did you go big right away or start smaller?