Single family homes are good but multifamily properties are one of the BEST ways to start building real estate wealth – especially for first-time investors.

You can live in one room/unit and let the other room/units to help pay your mortgage. This strategy is called HOUSE HACKING.

For residential loans, multifamily means:

• Duplex (2 units)
   
• Triplex (3 units)
   
• Quadplex (4 units)
   

👉 Anything 5 units or more is considered commercial and requires different financing.

There are 3 main loan strategies:

Requirements:

• Down payment as low as 3.5%
   
• Must live in one of the units (owner-occupied)
   
• Can buy up to a 4-unit property
   
• More flexible credit guidelines
   

You can use the FUTURE rental income from the other units to help you qualify!

Example:

• Buy a quadplex
   
• Live in 1 unit
   
• Rent out 3 units
   
• Those rents help pay your mortgage
   

✅ First-time buyers
✅ People with limited savings
✅ House hacking strategy

Great option if you don’t want FHA or already own property.

• 15% down for owner-occupied multifamily
   
• 20–25% down for investment (non-owner occupied)
   

• No FHA mortgage insurance
   
• More flexibility
   
• Can be used for pure investment (don’t have to live there)
   

• Higher down payment
   
• Stricter credit requirements
   

If you are eligible for VA benefits:

• 0% down payment
   
• Can buy up to a 4-unit property
   
• Live in one unit and rent the rest
   

This is one of the MOST powerful wealth-building tools for veterans.

House hacking =

👉 Buying a multifamily
👉 Living in one unit
👉 Renting the others

This lets you:

• Live for little or NO monthly payment
   
• Build equity
   
• Become a landlord
   
• Start your real estate portfolio FAST
   

You buy a duplex:

• Mortgage: $2,200/month
   
• You live in one unit
   
• Rent the other for $1,600
   

👉 Your real housing cost = ONLY $600!

That’s how investors get ahead EARLY.

Many investors repeat this process:

1. Buy a multifamily with FHA
    
2. Live there 1 year
    
3. Move out
    
4. Keep it as a rental
    
5. Buy ANOTHER multifamily
    

Do this a few times and you can own multiple properties within a few years.

When investing in multifamily, remember:

• Property taxes
   
• Insurance
   
• Maintenance
   
• Vacancies
   
• Property management (if needed)
   

Always run the numbers BEFORE buying.

• First-time buyers
   
• Young professionals
   
• People tired of paying rent
   
• Anyone wanting passive income
   
• Future investors
   

A duplex, triplex, or quadplex is one of the SMARTEST ways to get started in real estate investing.

You can:

• Use low down payment loans
   
• Let tenants pay your mortgage
   
• Build wealth faster than buying a single-family home

This is a DIFFERENT strategy than normal multifamily investing.

Buying a property specifically to rent nightly or weekly instead of long-term.

Examples:

• Vacation homes
   
• Condos
   
• Single-family homes
   
• Multifamily units
   
• Townhomes
   

Before buying you MUST research:

• Is Airbnb allowed in that city?
   
• HOA rules
   
• Zoning restrictions
   
• Short-term rental laws
   
• Tourist demand
   
• Seasonality
   

👉 NOT every neighborhood allows Airbnb!

You can buy Airbnb properties several ways:

• Buy as owner-occupied
   
• Low down payment (FHA, Conventional, VA)
   
• Live there part-time
   
• Rent it on Airbnb when you’re not there
   

This is the EASIEST way to get started.

Great for vacation markets.

• Usually 10% down
   
• Better rates than investment loans
   
• Must be in a vacation-type area
   
• You can still Airbnb it
   

• 20–25% down
   
• Higher interest rate
   
• Strict qualifications
   
• Based on YOUR income
   

YES! And it’s powerful.

Examples:

• Buy a duplex
   
• Live in one side
   
• Airbnb the other side
   

OR

• Airbnb all units for higher cash flow
   

You CAN buy a multifamily with FHA and:

• Live in one unit
   
• Use the other units as Airbnb
   
• As long as you occupy the property
   

This is a very popular strategy in Florida and tourist markets.

With short-term rentals you must analyze:

• Average nightly rate
   
• Occupancy rate
   
• Cleaning fees
   
• Management fees
   
• Furnishing costs
   
• Utilities
   
• HOA fees
   
• Local taxes
   

Long-term rent: $1,800/mo
Airbnb income: $3,000–$4,000/mo

👉 More work, but MUCH higher returns

1. Get pre-approved or understand your cash budget
    
2. Pick target city
    
3. Verify STR rules
    
4. Analyze properties
    
5. Run Airbnb income projections
    
6. Make offers
    
7. Close
    
8. Furnish
    
9. List on Airbnb
    
10. Automate with cleaners & systems
     

• City regulations can change
   
• Income fluctuates
   
• More management
   
• Higher wear and tear
   
• Seasonality
   

Airbnb is more active income than passive.

• Investors wanting higher cash flow
   
• Vacation markets
   
• People who travel often
   
• Entrepreneurs
   
• Experienced landlords
   

Both are GREAT strategies when done correctly.