Start with a smaller property (2-6 units), that has some value-add potential.

My real estate journey started in 2019 while living in New York, when a business partner and I purchased a distressed property in North Carolina.

Great question—and awesome that you're looking to scale from single families to multifamily.

Buying in a solid area with long-term upside, even if it means smaller cash flow at first, can pay off.

2) Most towns, especially the smaller ones in the 25k-75k range, do not have a short plat processes for allowing small lots that could be peeled off from the parent lot of a single family home.

Quote from @Justin Hayes: I'm new to real estate investing, looking to get my feet wet with small ROI investments such as tax liens to learn the process with smaller risks at first, then move to tax deeds.

For out-of-state investing with limited capital, consider landlord-friendly, cash-flow markets like Kansas City, Indianapolis, Cleveland, San Antonio, or Birmingham, which offer lower purchase prices and strong rent-to-value ratios.

My first multifamily gave me scale.  

@Devin Daly, if you think these properties won't produce what you expected and decide you want to sell both, it might be worth looking at doing a 1031 exchange if these properties have appreciated since you purchased them.

You'll likely be in a much smaller place.