Scaling from SFR to 60–100 Unit Multifamily – Value-Add Strategy in Florida
Investor · Palm Beach County, FL · Member since 2024 · 14 posts · 24 votes
Scaling from SFR to 60–100 Unit Multifamily – Value-Add Strategy in Florida
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Arman AhmedPro Member
Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 946 votesQuote from @Angela M Alvaroe-Ciampo:
Hi everyone,
I'm currently focused on value-add SFR and small multifamily opportunities in South Florida, primarily using a co-living strategy to increase cash flow and reposition underutilized assets.
As I continue to build deal flow, I’m actively working toward scaling into larger multifamily (60–100 units) and exploring how best to bridge that gap — whether through smaller acquisitions, partnerships, or portfolio strategies.
For those who have made that transition, I’d be interested to hear:
What was the key inflection point that allowed you to move into larger deals?
Did you scale through partnerships, capital relationships, or deal size progression?
Also open to connecting with others who are active in the Florida multifamily space or working on similar value-add strategies.
Appreciate any insight.
Angela
The jump from SFR/small multifamily into 60–100 units usually isn’t just one deal, it’s more of a mix of proof of execution, capital relationships, and repeatable systems that show you can operate at scale. Most investors don’t go straight from small deals to big ones; they build a track record through consistent value-add projects, then leverage that history to bring in partners or institutional capital for larger acquisitions. What often gets overlooked is that operations matter just as much as acquisitions at that level, so having strong property management and systems is what really unlocks scaling. A lot of investors also compare those growth markets with Midwest multifamily opportunities, where entry prices are lower, and it’s easier to stack doors faster before stepping into larger assets like 60–100 unit buildings.
7 Replies
- Lender · Seattle, WA · Member since 2017 · 118 posts · 161 votes5mo
As you start to move up into the 100+ multifamily unit space, you'll find that mortgage liquidity from traditional capital sources in the small balance space will start to dry up. Namely - you'll see less and less banks, credit unions, and private lenders / hard money lenders that are able to keep up with your larger loan sizes >$10,000,000.
The large national & multistate banks (in addition to large federal credit unions) will still be players in the >$10,000,000 multifamily debt space. But the breadth of bank/credit union/private lender options available to you will shrink.
Once you start consistently doing loans >$10,000,000 - this is where you start to see Freddie Mac, Fannie Mae, HUD, life companies, CMBS, and debt funds play a more prominent role in the multifamily debt financing space, as opposed to banks, credit unions, and hard money lenders.
The permanent financing space typically characterized by Freddie/Fannie/HUD loans - at least for secondary/tertiary market workforce multifamily. Larger $20,000,000+ loans in core locations collateralized by Class A assets tend to attract institutional life company lenders, who prefer stronger locations & newer vintage assets. High leverage permanent loans are typically the domain of CMBS lenders - particularly for borrowers who need ultrahigh leverage loans to refinance out of dodgy bridge/construction debt that was placed in 2021-2022 at the peak of the market.
Freddie/Fannie/HUD/lifeco loans are less flexible than your typical bank/credit union loans in terms of prepayment penalties, loan agreement / loan doc covenants, etc. However - you'll find that Freddie/Fannie/HUD/lifeco rates in the low-mid 5.00%'s (prior to buydown) are tough to beat. Especially if you're a fan of partial-full term interest only, non-recourse loan structures.
The large balance $20,000,000+ bridge lending space is dominated by debt funds, life companies, and larger bank/credit union lenders. Whereas before in the smaller <$10,000,000 multifamily loan space, the usual suspects were banks, credit unions, and hard money lenders.
Lending aside, you start to see more syndications in the 50+ unit multifamily space as well. Mainly because more capital is required. For smaller <50 unit deals, you see more single sponsor / single borrower deals guaranteed by high net worth individuals (no syndications, no partners, etc).
Hope this helps!
- 5moJ CastroBusiness MemberLender · Florida · Member since 2025 · 698 posts · 253 votes
Hi @Angela M Alvaroe-Ciampo, welcome to BP!
From a lender perspective, the jump from small deals to 60–100 units usually comes down to track record and balance sheet strength.Most lenders on larger multifamily will look for:
- Proven experience managing value-add deals (even if smaller scale)
- Liquidity and net worth to support the loan
- A clear, repeatable business plan (your co-living strategy can help, but it needs to translate to stabilized NOI)
The inflection point we typically see is when borrowers either:
- Partner with experienced operators/sponsors, or
- Build enough of a portfolio + capital relationships to qualify on their own
You’re on the right track — just make sure each deal you do now is helping you build a story lenders can confidently scale with. Best of Luck!
- 5moFrank PyleBusiness MemberSpecialist · USA · Member since 2024 · 279 posts · 130 votes
The jump from value add SFR and small multifamily to 60 to 100 units usually happens when you stop thinking in deal size and start thinking in team credibility. In South Florida especially, the numbers have to survive higher insurance, taxes, payroll, and slower eviction risk, so I would underwrite the first bigger deal at a real DSCR after stabilized expenses, not just pro forma rent growth. A practical bridge is buying or partnering on a 10 to 30 unit first, then using that track record, lender relationship, and investor reporting process to earn the right to raise for something larger. Partnerships can work well, but only if each person brings a clear lane like balance sheet, capital, operations, or sourcing. The mistake I see is jumping from high cash flow co living into apartment underwriting without adjusting for professional management, reserves, capex, and exit cap sensitivity.
What size deal are you underwriting right now and what are you assuming for insurance, taxes, and exit cap?
IEC can help sanity check the underwriting and financing structure if you want a second set of eyes before you chase the larger units. - Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes5mo
I think for a lot of people, you need to understand if you want to run a business or not. When you get into ownership of larger complexes, you own a business. When you own a dozen single families, you generally have a hobby. But how you get there, for many, is limited by access to capital. Equity in a 60 unit building: typically a few million, depending on market and quality of asset/tenant base. And another few million in debt. Typical, non-recourse debt covenants are 1:1 net worth to loan balance and 10% of loan balance in liquid assets. So a $3mm loan means you need to have $3mm net worth and $300k of liquid assets, or a key principal and/or partners to get to that amount.
So, if you see yourself as a solopreneur, the inflection point tends to be when you are financially able. Otherwise, you are forming partnerships in various forms to get it done.
Then again, I have two friends that come to mind: one owns about 250 units the other owns 1200 units, neither with outside equity. They just layer one deal into more. Create value from the first deal, refi, buy again. Or, you have the syndicators, like some that I have worked for, that own thousands and thousands of units. But their days are different. They are investment managers for others now. A lot more legal, compliance, questions from investors, marketing for new investors to grow, etc.
I would recommend any and all meetups around you. The events page on BiggerPockets might have some, or meetup.com, or REIA. Where you are now, there will be lots of people in similar shoes. As you grow, you will realize not many that are going to meetups grow out of where they are, because it is more work along the way.- Investor · Palm Beach County, FL · Member since 2024 · 14 posts · 24 votes5mo
Quote from @Evan Polaski:
I think for a lot of people, you need to understand if you want to run a business or not. When you get into ownership of larger complexes, you own a business. When you own a dozen single families, you generally have a hobby. But how you get there, for many, is limited by access to capital. Equity in a 60 unit building: typically a few million, depending on market and quality of asset/tenant base. And another few million in debt. Typical, non-recourse debt covenants are 1:1 net worth to loan balance and 10% of loan balance in liquid assets. So a $3mm loan means you need to have $3mm net worth and $300k of liquid assets, or a key principal and/or partners to get to that amount.
So, if you see yourself as a solopreneur, the inflection point tends to be when you are financially able. Otherwise, you are forming partnerships in various forms to get it done.
Then again, I have two friends that come to mind: one owns about 250 units the other owns 1200 units, neither with outside equity. They just layer one deal into more. Create value from the first deal, refi, buy again. Or, you have the syndicators, like some that I have worked for, that own thousands and thousands of units. But their days are different. They are investment managers for others now. A lot more legal, compliance, questions from investors, marketing for new investors to grow, etc.
I would recommend any and all meetups around you. The events page on BiggerPockets might have some, or meetup.com, or REIA. Where you are now, there will be lots of people in similar shoes. As you grow, you will realize not many that are going to meetups grow out of where they are, because it is more work along the way.Thank you!
- 5moArman AhmedPro MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 946 votes
Quote from @Angela M Alvaroe-Ciampo:
Hi everyone,
I'm currently focused on value-add SFR and small multifamily opportunities in South Florida, primarily using a co-living strategy to increase cash flow and reposition underutilized assets.
As I continue to build deal flow, I’m actively working toward scaling into larger multifamily (60–100 units) and exploring how best to bridge that gap — whether through smaller acquisitions, partnerships, or portfolio strategies.
For those who have made that transition, I’d be interested to hear:
What was the key inflection point that allowed you to move into larger deals?
Did you scale through partnerships, capital relationships, or deal size progression?
Also open to connecting with others who are active in the Florida multifamily space or working on similar value-add strategies.
Appreciate any insight.
Angela
The jump from SFR/small multifamily into 60–100 units usually isn’t just one deal, it’s more of a mix of proof of execution, capital relationships, and repeatable systems that show you can operate at scale. Most investors don’t go straight from small deals to big ones; they build a track record through consistent value-add projects, then leverage that history to bring in partners or institutional capital for larger acquisitions. What often gets overlooked is that operations matter just as much as acquisitions at that level, so having strong property management and systems is what really unlocks scaling. A lot of investors also compare those growth markets with Midwest multifamily opportunities, where entry prices are lower, and it’s easier to stack doors faster before stepping into larger assets like 60–100 unit buildings. - Real Estate Coach · Salt Lake City, UT · Member since 2017 · 273 posts · 414 votes5mo
Great question...
I actually had a similar conversation earlier today (and even used the term inflection point)...
For me -- coaching was the inflection point. I had a handful of single family, wanted to get into multifamily, but didn't know how to start. At the time I was looking for something in the 8-10 unit range because that's what I could buy with a down payment. One day, I toured a property and walked out of it thinking "I don't even know if this will make money" -- and started looking for help.
A few months later, I paid for a 12-month coaching program, and by the time the year was up, I had found some partners, raised private capital, and purchased a 55-unit property. Our partnership contributed $500k and we raised just over $1 millon for the purchase. That was 2019.
Since then, I've been involved in a lot of syndications like that where we raise private capital for the majority of the equity... I have a handful of people that I like working with and partner with repeatedly and deal sizes have varied from 12-180 unit properties.
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