Buying 4 Small Multifamily Rentals in Just 2 Years (While Working a W2)

Summary of Buying 4 Small Multifamily Rentals in Just 2 Years (While Working a W2)

by BiggerPockets

43m•February 16, 2026
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Overview of Buying 4 Small Multifamily Rentals in Just 2 Years (While Working a W2)

This Real Estate Rookie episode (BiggerPockets) features Derek Brickley, who bought a duplex as a house hack while working a full-time W‑2 job and scaled to four small multifamily deals within roughly two years. The conversation focuses on how a single intentional first deal can create clarity and momentum, how Derek limited downside as a rookie, the operational surprises he faced after closing, and the systems and mindset that let him repeat the model while keeping his day job.

Key takeaways

  • Start with a clear buy box: Derek limited himself to small multifamily (2–4 units) and a house hack approach to lower acquisition cost and risk.
  • “Who, not how”: you don’t need to know everything — assemble a network (contractors, agents, property managers, lenders) who can fill gaps.
  • Expect the first deal to be a base hit, not a home run. The primary value of Deal #1 was confidence and lessons learned, not big cashflow.
  • Plan contractors and timelines before closing. Most rookie rehabs take far longer than initial estimates.
  • Tenant qualification and lease enforcement are essential — inherited tenants can create unexpected problems.
  • Track time vs. cost: DIY can save money but may cost you valuable time and slow scaling.

Timeline & results (high level)

  • First duplex (house hack) purchase: December 2023.
  • Total deals: 4 small multifamily purchases in ~2 years.
  • First property cashflow: roughly $150/month (and less after unplanned expenses like snow plowing). The property essentially broke even but provided invaluable experience.
  • Rehab expectations vs reality: planned 4–6 weeks; actual ~6 months.

Deal selection: buy box & risk limits

  • Strategy: House hack (buy and live in one unit, rent the other) on 2–4 unit properties.
  • Key criteria Derek used:
    • Market fundamentals (demand, rent comps, appreciation/forced equity upside).
    • Ability for rental income to cover expenses in a worst-case scenario (e.g., rent the other unit).
    • Prioritize deals with low downside and predictable risks.
  • He deliberately said “no” to other strategies (short-term rentals, flips, wholesaling) early on to stay focused.

What surprised him after closing

  • Rehab scope creep: what looked cosmetic revealed hidden issues (multiple flooring layers, industrial adhesives, odors, etc.), turning a short project into months.
  • Time cost of DIY: saving money upfront but losing scalable time; needed to reassess the value of hiring pros.
  • Operational work while working full-time was heavier than expected — requiring delegation and systems.

Systems and processes he implemented (and wishes he'd had earlier)

  • Pre-identify contractors and who will perform each scope before closing.
  • Create a clear renovation timeline and contingency plan.
  • Use written communication and property-management software for tenant messaging and documentation (hosts recommended TurboTenant).
  • Put lease provisions in writing and enforce the lease consistently.
  • Track finances and operations with tools like Baseline (sponsor), but generally maintain financial reporting and bookkeeping systems early.

Tenant management & lease enforcement

  • Confirm who is on the lease, their terms, and occupancy (avoid surprises like over-occupancy or unauthorized pets).
  • Enforce leases fairly and consistently — use the lease as the “bad guy” so relationships don’t become personal.
  • Keep communications in writing (email/PM software) for documentation and legal protection.
  • Consider delegating tenant-facing communications (property manager, third party) to remove personal conflict.

Mindset & scaling advice

  • You won’t ever feel 100% ready; waiting for total certainty paralyzes progress.
  • Surround yourself with people who have skills you don’t. The network multiplies your ability to act.
  • Treat the first deal as an education investment: lessons learned are more valuable than short-term profits.
  • Keep the W‑2 while building a repeatable rental model if it provides stability and speed to scale.
  • Focus on the next deal instead of trying to leap to the end goal — compound growth happens one transaction at a time.

Recommended first steps / action items

  • Define a crystal-clear buy box (property type, market, target returns, worst-case rent coverage).
  • Build your “who” — agent, lender, contractors, property manager or tools — before you underwrite a property.
  • Plan rehab scope and timeline pre-close; get bids or at least contractor availability penciled in.
  • Start with a house hack if your market supports it to reduce living costs and learn operations.
  • Document everything (leases, messages, invoices) and put communication rules in your tenant policy.

Notable quotes / insights

  • “You don’t need to know how — you need to know who.” (Assemble the right people.)
  • “One deal can turn vague hope into a clear plan.”
  • The first property “bought me the confidence that I could do it” — experience > theoretical knowledge.

Resources & recommended reads/tools mentioned

  • BiggerPockets community/forums & local meetups (networking).
  • Books: The Book on Flipping Houses (Jay Scott), Hug Your Haters (Jay Baer), Crucial Conversations.
  • Tools / platforms referenced: TurboTenant (PM/tenant messaging), Baseline (banking/bookkeeping sponsor), BiggerPockets events.
  • Contact Derek: social handle LoansByDB (DM for questions / follow-up).

Summary: Derek’s path shows a conservative, repeatable approach to scaling small multifamily while keeping a W‑2. Start small, lock a focused buy box (house hack duplex), over-prepare around contractors and tenant processes, expect operational surprises, and use the first deal to gain confidence and build a team that lets you scale without burning out.