Small multifamily rentals may be the secret to turning average investors into millionaires. These unassuming properties are in the perfect “sweet spot” for scaling a real estate portfolio, helping you reach financial independence faster with more passive income than regular, single-family rentals, but with even fewer expenses.
Today, we’re giving you the five steps to buy your first small multifamily and why 2025 may be the best time to get in the game.
Dave, your host, is financially free right now primarily because of small multifamily rentals. His first rental was a small multifamily, he house-hacked a small multifamily, and over a decade later, this remains his favorite real estate investment—for good reason. Small multifamily properties bring in more rent but leave you with only one roof, one furnace, and one foundation to worry about. You can use the best, lowest down payment debt to get one, and just a few of these properties could make you financially free.
So, how do you buy your first multifamily property? We’ll break down the five beginner-friendly steps to get there, from picking a market to finding deals, getting a loan, analyzing for cash flow, and closing and managing. This is the small multifamily blueprint that works in 2025 (we’re currently using it to invest!).
In This Episode We Cover
Why small multifamily rentals are in the perfect investing “sweet spot” for 2025
The five simple steps you can take this year to buy a small multifamily rental
Why smaller multifamily rentals often outperform larger ones
How to get into your first small multifamily for just 3.5% down
The best real estate markets for small multifamily investing in 2025
And So Much More!
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1178
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