Should You Invest in a Small or Mid-Sized Multifamily Deal? Get the Pros & Cons Here!

Should You Invest in a Small or Mid-Sized Multifamily Deal? Get the Pros & Cons Here!

1 min read
Matt Faircloth

Matt Faircloth, co-founder and president of the DeRosa Group, is a seasoned real estate investor. The DeRosa Group, based in historic Trenton, N.J., is a developer and owner of commercial and residential property with a mission to “transform lives through real estate.” DeRosa creates partnerships to finance select real estate investments and has a proven track record of providing safe, profitable investment opportunities to their clients.

Matt, along with his wife Liz, started investing in real estate in 2004 with the purchase of a duplex outside of Philadelphia with a $30,000 private loan. They founded DeRosa Group in 2005 and have since grown the company to hundreds of units in residential and commercial assets throughout the East Coast. Under Matt’s leadership, DeRosa has completed tens of millions in real estate transactions involving private capital, including fix and flips, single family home rentals, mixed-use buildings, apartment buildings, and office buildings.

Matt is an active contributor to the BiggerPockets Blog and has been featured on the BiggerPockets Podcast three times (show #88, #203, and #289). He also regularly contributes to BiggerPockets’ Facebook Live sessions and teaches free educational webinars for the BiggerPockets Community.

Matt authored the Amazon Best Seller Raising Private Capital: Building Your Real Estate Empire Using Other People’s Money. The book is a comprehensive roadmap for investors looking to inject more private capital into their real estate investing business and is a must-read for anyone looking to grow their business by using private lenders and equity investors. Kirkus, the No. 1 trade review publication for books, had this to say about Raising Private Capital: “In this impressively accessible introduction to a complex subject, Faircloth covers every aspect of private funding, presuming little knowledge on the part of the reader.”

Matt and his wife Liz live in New Hope, Penn., with their two children.

Matt earned a B.S. in Industrial and Systems Engineering with a minor in Business from Virginia Tech. (Go, Hokies!)

DeRosa Group’s YouTube channel

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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!