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 investing blueprint that works in 2025 (we’re currently using it!).
0:00 Small Multifamily 101 2:12 Why It Works in 2025 6:36 Bigger Isn’t Better 8:25 Sponsor: RentRedi! 9:01 1. Define Your “Buy Box” Market 12:02 2. Get Pre-Approved (+Creative Options) 15:41 3. Analyze a LOT of Properties 22:55 4. Make Offer Get Inspection 24:29 5. Close and Manage 26:56 Common Multifamily Mistakes to Avoid
