BiggerPockets

Hey Everyone,
I was wondering if I can get some input from all you investors out there. Basically I have been rehabbing properties and buying/selling land full time for almost 4 years now and thinking about getting into apartment buildings for cash flow. I have basic/minor experience with renting out and playing the landlord, I was curious though what size building everyone would say is a good size to start with 4-6 unit......4-8 units...I dont want to go much bigger then that as I know alot of things can go wrong. I will be focusing on properties that are all ready in good condition so nothing major would have to be done by me or anything. I have 40k in reserves just in case I have non-paying tenants or repairs or anything else of that sorts. I still have money for the downpayment and etc on the purchasing end but really have no experience when it comes to bigger buildings.

Any help or info would be great

Thanks
Adrian

Christian,
I have had 2-4 units before, sorry I should have stated that earlier. I just think its time to go a tad bigger. Basically Im just looking to see what others have experienced with the whole financing, landlording, repairs, type issues.

I dont know I heard it was quite different, Im sure its kinda like owning two 4 unit buildings but when there all combined Im sure its very different.

Well put Rich, I just dont wanna go treading in the deep end you know. Im thinking about kicking it up to a 6-8 unit and keeping them for a while. Other then that I would LOVE TO GET TO a 154 unit complex.

Nationwidepi,
Thanks, I think Im qualified enough to move up but dont want to over do it and I was hoping you all could tell me if my financials were good enough to get me started since you all have more experience in me with apartment buildings. Yeah finding the right deal seems to be a tough yet a breeze in this "wonderful" market lol as there are many deals out there lol.

I will and am always careful, I just think its time I stepped it up a little. Do you guys think I should be sticking with more 2-4 units?

Of course I always check the numbers 3-4 times on every deal, Im not letting people hinder I just choose to play it safe when it comes to dealing money and the possibly of letting my properties crash. I always think big......and do big.....but take baby steps to get there (I like to call it playing it safe).

Adrian

Once the buildings get up near 100+ units is $100 per door cash flow still possible?

Brian

Adrian,

Do you own any rentals now? From what you've said and implied, it doesn't sound like it. If not, I would start with some smaller buildings until you get some experience.

If you find a deal, post the numbers and we'll give you an analysis.

Mike

I think you should head over to Landlord Tenant forum. There is a commercial real estate sub topic there. And a lot more info there. Good luck.