Many people believe that purchasing more units will lead to greater returns, but this is not always the case. Envision Advisors, for example, works with 100 house hacking clients, but less than five of them have multifamily properties (i.e. duplexes, triplexes, or fourplexes). There are several reasons for this:
- Limited inventory of multifamily properties available for purchase
- High price premiums due to competition with other investors looking to purchase multifamily properties
- Higher down payments required (15% or more), even if it’s your primary residence
- The only exception is an FHA loan for a duplex
- Most multifamily properties are sold by investors, which can leave you with much higher deferred maintenance costs.
BiggerPockets House Hackerz Youtube Series – House hacking a four-plex