The Lifestyles Unlimited Real Estate Investor Radio Show

Why Small Multifamily Properties Get Called "Fake"


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"Imagine your net worth going up by 62% just by buying the asset."

 

Are duplexes, triplexes, and fourplexes really "fake" multifamily properties? Al Gordon tackles this controversial topic head-on, exploring why smaller multifamily properties get dismissed by some investors and why that perception might be completely wrong.

 

This episode dives deep into the classification debate surrounding 1-4 unit properties. While some investors dismiss these as "fake multifamily" because they're financed like residential properties rather than commercial ones, Al reveals why this distinction actually creates powerful advantages for everyday investors.

 

What You'll Discover

Why duplexes, triplexes, and fourplexes are classified as residential properties and how this benefits investors

The specific loan programs available for small multifamily that aren't available for larger properties

How a real fourplex deal could generate $4,200 monthly cash flow with 62% equity capture

 

Key Timestamps

03:01 The "fake multifamily" assets Al will discuss today

04:50 How lending guidelines create the residential vs commercial distinction

07:01 Why location matters in how plexes are marketed

11:57 Counter-arguments: Why plexes ARE real multifamily

17:30 Financing advantages of residential classification

23:32 FHA, VA, and conventional loan options for plexes

26:00 Portfolio loan strategies for scaling beyond 10 properties

30:10 Real deal breakdown: Tennessee fourplex with $192,000 equity capture

 

Whether you're a beginning investor looking for your first multifamily property or an experienced investor considering small multifamily assets, this episode breaks down the financing advantages and investment potential that make "fake" multifamily properties surprisingly real opportunities.

 

Al shares a compelling example of a Tennessee fourplex that demonstrates the power of these smaller properties: requiring $308,000 out of pocket while capturing $192,000 in equity and generating $4,200 monthly cash flow for a 16.3% cash-on-cash return.

 

 

Ready to build real wealth through real estate?

Attend our Free Real Estate Class - Perfect for beginners exploring multifamily investing

 

See Real Success Stories

Attend a Free Live Case Study Event - Learn how members are building wealth with small multifamily properties

 

Ready to escape the traditional retirement trap?

Join the Financial Freedom Program - Build passive income without trading time for money

 

 

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The information and opinions on the Lifestyles Unlimited Real Estate Investor Radio Show are for entertainment purposes only and do not constitute investment advice. Please consult a professional regarding your personal investment needs.

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