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Multi-Family and Apartment Investing

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John Warren
  • Real Estate Broker
  • 1658 N. Milwaukee Ave Ste B PMP 18969 Chicago, IL 60647
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Go small or go big?

John Warren
  • Real Estate Broker
  • 1658 N. Milwaukee Ave Ste B PMP 18969 Chicago, IL 60647
Posted Jul 7 2015, 12:37

Hi everyone,

I have done a ton of reading on buying both 2-4 unit properties and I have also done a good amount of research on buying apartment buildings. I believe that the larger apartment buildings is where I want to end up, however, I was wondering if now is really a great time to jump in or if I should be looking for more 2-4 unit properties for now. Here is my thought process:

1. I may not have enough money to get into some of the larger apartment complexes where economy of scale starts to take affect.

2. I can lock in 30 year loans at silly rates right now. I currently have one four-unit building at 4.2% for 30 years.

3. Interest rates are going to rise... I feel like prices may be a bit inflated due to the last 4-5 years of low interest rates. Won't prices fall once interest rates rise?

I would love to get peoples opinions! I would love to get into some 5+ buildings so I can do a value add strategy, but I am definitely worried about the interest rates rising on those commercial loans in the next few years!

  • Real Estate Agent IL (#475.166619)

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