BiggerPockets Real Estate Podcast How to Buy a Small Multifamily Rental (2-4 Units) in 2025
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Sep 24, 2025 Small multifamily rentals may be the key to financial freedom, especially in 2025. Discover why properties with two to four units provide multiple income streams and lower risks. Learn a five-step blueprint for purchasing your first multifamily property, covering goal-setting, financing, and deal analysis. Find out the common pitfalls new investors face, such as underestimating expenses and overpaying for potential. With the right strategies, these investments could pave your way to millionaire status!
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Why 2–4 Units Are The Sweet Spot
- Small multifamily (2–4 units) hits a 'sweet spot' between single-family and large commercial buildings.
- They combine residential financing, lower risk, and better scaling economics than single-family homes.
How Dave Started With Small Multifamily
- Dave Meyer recounts that small multifamily is how he got started and remains his preferred investment.
- He would always choose 2–4 units because of their combined benefits and reliability.
Built-In Risk Mitigation And Economies
- Multiple units provide income diversification so one vacancy doesn't drop 100% of cashflow.
- Shared systems (one roof, one HVAC) create economies of scale for repairs and maintenance.