These days, it seems like everyone wants to invest in multifamily. But what sized multi should you focus on? There are pros and cons to both, but what are they? Should you invest in a small 15-unit complex or stretch to the 50 or 75-unit deal? Which is a better, more lucrative investment long-term?
In today’s video, I go into detail on the topic and give my definition of small and mid-sized deals and why I break it up that way. I go into the biggest downside of mid-sized multifamily investing and why it exists in today’s marketplace. What’s the biggest cash flow killer on a small multi that is not a real factor on mid-sized deals? Watch the video to find out!
Related: 4 Ways Technology is Shaking Up Commercial Real Estate (& Why Multifamily Will Pull Ahead)
Should You Invest in a Small or Mid-Sized Multifamily Deal?
So, this is a way larger conversation than I could get into in a 10 minute video, and I’m hoping we can keep it going in the comments section. I didn’t get into some of the other factors that affect mid-sized deals, such as additional services you have to consider (landscaping and trash removal to name a few). I also didn’t get a chance to talk about how management affects both deal sizes.
What are your thoughts?
Leave a comment so we can continue the conversation!