Small Multifamily Property Investing

Small multifamily investors (2-4 units) typically cash flow $400-$1,500+ monthly per property.

Owning 3-10 small multifamily properties generates $200,000-$800,000+ in annual equity and cash flow growth.

In 2025, duplex, triplex, and fourplex properties offer better returns than single-family with owner-occupied financing benefits.

Benefits include higher cash flow per property ($400-$1,500 monthly), living in one unit while renting others (house hacking), qualifying for owner-occupied financing (3.5% FHA, 5% conventional down), multiple income streams reducing vacancy risk, and better price per unit than single-family.

Successful multifamily investors start with house hacking (live in one unit, rent others), buy in strong rental markets, screen tenants carefully, maintain properties proactively, and scale to 3-10 properties over time.

House hacking particularly powerful allowing first-time investors to live for free or reduced cost while building equity.

After 1 year can move to next property (owner-occupied financing again) keeping previous as rental.

Keys include finding properties meeting 1% rule (challenging but achievable in some markets), managing multiple tenants, and benefiting from economies of scale.