How to Buy Your First Small Multifamily Property This Year (2-4 Units)

September 18, 2026

AI Summary

5 min read

How to Buy Your First Small Multifamily Property in 2026

"I have seen this in my own investing time and time again. If you have a three or a four unit and you have four different people paying you rent, that spreads your risk among multiple people. There's no single point of failure." Dave Meyer, Chief Investment Officer of BiggerPockets, makes a case that small multifamily properties—duplexes, triplexes, and fourplexes—are actually lower risk than single-family rentals, not higher. The reason is straightforward: when a tenant stops paying in a single-family home, you lose 100% of your income. In a fourplex with equal rents, you lose 25%. That math, combined with access to residential fixed-rate financing, is why Meyer calls small multifamily his "bread and butter, my ride or die."

Why Small Multifamily Occupies a Unique Market Position

Meyer argues that two-to-four-unit properties are "basically designed and built and made for people like us"—small to medium independent investors. The logic is structural: most homebuyers want single-family homes with yards and picket fences, not duplexes. Meanwhile, institutional investors buying 20-, 50-, or 500-unit apartment buildings cannot efficiently deploy capital four units at a time. This leaves a sweet spot where independent investors face less competition from both sides.

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What you'll learn

1 (00:04) **Why Small Multifamily is the Sweet Spot** - Dave introduces the episode's thesis: 2-4 unit properties are the "bread and butter" asset class for independent investors.
2 (03:04) **The Case for Small Multifamily in 2026** - Dave explains why this asset class is uniquely suited to today's market conditions.
3 (07:58) **Step 1: Goal Setting & Market Research** - Dave lays out the first actionable step: defining your buy box before you start looking at properties.
4 (15:36) **Step 1A: Realism Check** - Dave emphasizes aligning your goals with what's actually available in your target market.
5 (17:42) **Step 2: Financing Options** - Dave covers the specific loan products available for small multifamily and their trade-offs.
6 (20:19) **Step 3: Deal Flow & Analysis** - Dave breaks down how to find properties and run the numbers systematically.
7 (28:09) **Key Metrics: Cash-on-Cash & Total Return** - Dave explains his personal benchmarks for evaluating a deal.

+ Full timestamped outline available in the app

Guests on this episode

Dave Meyer

Show Notes

This is how to buy a small multifamily rental property the right way. It’s not hard, it’s not complicated, and it’s (arguably) one of the best residential real estate investments to make right now. Why? Safer financing, faster scale, and bigger cash flow. Unlike single-family rentals, small multifamily real estate was designed to make you money, and the returns clearly show that.

So how do you get your first duplex, triplex, or quadplex this year? Today, Dave is walking through each step you need to take.

From finding small multifamily real estate deals to financing them with as little as 3.5% down, running the numbers using a rental property calculator, offering, negotiating, and getting your first rent check, this is how to buy a small multifamily the right way. Dave also shares some clear red flags to avoid and when to walk away from a property even if it fits your buy box.

Ready to build wealth with small multifamily? This is how you do it.

In This Episode We Cover

Why small multifamily rentals (2-4 units) easily beat single-family rentals

The low money down financing you can get on your next multifamily (3.5% down)

Choosing a market with affordable home prices, cash flow, and appreciation

How to negotiate with sellers on more than just price (and get your offer accepted)

Small multifamily red flags to avoid (they could cost you thousands)

Dave’s due diligence checklist to cover before you buy the property

And So Much More!

Check out more resources from this show on ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠