Real Estate Rookie

The Beginner’s Guide to Finding (and Funding) Small Multifamily Real Estate

Jan 27, 2025

Join real estate investors Amelia McGee and Grace Gudenkauf as they delve into the world of small multifamily properties. Amelia, an experienced investor from Iowa, and Grace, who specializes in mid-term rentals in Arizona, debunk myths that deter rookie investors. They discuss how these properties offer less risk and better cash flow than single-family homes. Insights on finding off-market deals, navigating zoning issues, and creative financing options like seller financing are also covered—equipping you with the tools to jumpstart your investing journey!

39:37

Creator website

Episode guests

Grace Gudenkauf

Amelia McGee

AI Summary

Highlights

AI Chapters

Episode notes

Podcast summary created with Snipd AI

Quick takeaways

Investing in small multifamily properties reduces risk through tenant diversification, making it a more stable income source than single-family homes.

Prioritizing cash flow by applying the 1% rule is crucial for evaluating multifamily properties and ensuring financial viability.

Deep dives

The Benefits of Small Multifamily Investments

Investing in small multifamily properties, such as triplexes and fourplexes, offers numerous advantages compared to single-family homes. The primary benefit is reduced risk through diversification, as having multiple tenants helps prevent total income loss due to vacancies. Additionally, maintenance is less burdensome with shared infrastructure, such as one roof and one lawn, making economic efficiency easier to achieve. This strategic approach allows rookie investors to generate consistent cash flow and manage their investments more effectively.

Maximizing Your Financial Efficiency in Real Estate

02:55

Intro

2min

Investing in Small Multifamily Properties

8min

Maximizing Your Financial Efficiency in Real Estate

3min

Strategic Real Estate Investing

14min

Mastering Multifamily Investments

5min

Navigating Seller Financing for Multifamily Properties

3min

Streamlining Real Estate Management

4min

Small multifamily investing might seem scary to a new investor, but what if we told you these properties are less risky than single-family homes and even easier to buy in many cases? In this episode, we’ll bust the most common multifamily myths that keep rookies on the sidelines so that YOU can take down your first multifamily property in 2025!

Welcome back to the Real Estate Rookie podcast! Today, Amelia McGee and Grace Gudenkauf return to the show to deliver a masterclass on small multifamily investing. They’ll show you how to find off-market real estate deals at a deep discount, why cash flow is king when analyzing multifamily properties, and which neighborhoods to target for long-term appreciation. We’ll also get into zoning and permitting issues to be wary of—pitfalls that could wipe out your cash flow if you’re not careful!

But that’s not all. Of course, the BIG question on every rookie’s mind is, “How do I get financing for these deals?” and we’ve got the answer! Amelia and Grace will show you how to buy larger properties with low money down and provide you with the perfect pitch for seller financing!

In This Episode We Cover:

Why small multifamily properties are even less risky than single-family homes

Boosting your cash flow by using multiple investing strategies for the same property

Taking advantage of HUGE appreciation by targeting developing areas

Buying multifamily properties with LOW money down by house hacking

The BEST way to pitch seller financing for off-market multifamily deals

Multifamily investing “myths” new investors are taught (and why they’re wrong!)

Common zoning and permitting issues that can kill your cash flow

The keys to managing multiple tenants (and how to keep them happy!)

And So Much More!

Links from the Show

Ashley's BiggerPockets Profile