Real Estate Investor · Member since 2008 · 31 posts · 0 votes
Hello Everyone!
I am just starting out in real estate investing and I have been looking at both smaller multi-family properties (1-4 units) and larger apartment complexes as well (5-60 units). I am very new to this game but I work VERY hard to make sure I am not buying into a bad deal.
The question I have is whether or not I should start small and move my way up? Or if I find a great deal that is larger I should go for it? I want to make lots of money, and I feel like that is more attainable in the larger buildings.
Property Manager · Passaic, NJ · Member since 2008 · 369 posts · 83 votes
18y
Colin, do what you feel comfortable with. Large or small - both have risk factors and both have potential. If the right opportunity is there go for it. I began with 1 unit, 2 more, 6 more, etc. etc. Just keep in mind the bigger the building, the bigger the cushion needed. Bigger bldgs and age of buildings dictate whether you need more maintenance, an on-site Super etc. You can estimate expenses using criteria you learn around this site - just remember that in bigger bldgs major components - boilers, elevators..are costly items.
Property Manager · Passaic, NJ · Member since 2008 · 369 posts · 83 votes
18y
Colin, do what you feel comfortable with. Large or small - both have risk factors and both have potential. If the right opportunity is there go for it. I began with 1 unit, 2 more, 6 more, etc. etc. Just keep in mind the bigger the building, the bigger the cushion needed. Bigger bldgs and age of buildings dictate whether you need more maintenance, an on-site Super etc. You can estimate expenses using criteria you learn around this site - just remember that in bigger bldgs major components - boilers, elevators..are costly items.
Real Estate Investor · Costa Mesa, CA · Member since 2008 · 37 posts · 2 votes
17y
Hey Colin, you know, I had the same dilemma. I wanted to start big so I could make more money faster. You know what happened to me though? I got so hung up on my size requirements that I was passing up really good smaller deals. I learned this from several great people - As long as you're well educated on large and small properties, don't worry too much on the size. Just get a deal! Start making offers. Get yourself in the game.
Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
17y
Colin- Is that you in the picture? If so, you're young enuff that you have time on your side. So, Start small and work your way up in money, knowledge and experience.
Now I'll take the other side. BUY BIG!! You're young enuff, that if you lose your capital, forced into BK, you're still young enuff to start over, learn from your mistakes and still have time to make a killing in re and retire young.
There, now just pick one. Rich.
Real Estate Investor · OH · Member since 2008 · 4k+ posts · 1k+ votes
17y
I strongly recommend starting small and gaining experience as you grow. Single family houses are generally the most forgiving for a lot of reasons and therefore I always recommend starting with a few of those.
You do NOT want to BUY BIG; lose all your capital; gain a bad reputation; and be forced into bankruptcy. Yes, you are young enough to start over after failing, but why fail? My vote is to do it right the first time!