When I speak to new investors looking to buy and hold real estate, one of the first questions they ask is what type of properties they should buy first. While purchasing a property that provides income potential is a wise investment, purchasing a multifamily is even better. If you buy a condo or single family and lose your tenant, you have zero cash flow. With a multi family you can carry it easier if you lose a tenant because you have multiple tenants paying rent. It is also harder to qualify for an investment property one you own multiple properties, so make the first one count by purchasing a 3 or 4 family with as little as 3% down. After your first purchase you will typically need 20% down for any additional investment purchases.