Strategy for breaking into large multifamily property
Hows this for a strategy. Let's pretend I have acquired 10 mixed real estate investments, single family and possibly duplexes or triplexes. Does it make sense to bundle that portfolio and sell it to raise capitol to buy an apartment complex? There's obviously a lot of financial variables that will be indicators (cash flow of current properties, equity, apartment complex numbers etc..). I'm wondering if, as a general strategy, this a good way to break into larger multifamily properties?
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Sure, selling smaller assets to fund a bigger asset is a long term proven strategy. You are reducing your diversification, but ideally gaining efficiently and scale. Another option could be to borrow against your portfolio to fund the large multi-family purchase.