Hello, I am relatively new to Real Estate investing, with 1 single family and 1 duplex. I would love to take advantage of the economies of scale with an apartment complex (maybe 5-20 units).
I feel pretty comfortable about the entire process of purchasing, rehabbing, and renting out 1-4 family residential, but how about with anything 5 and more? I realize you obviously can not get a conventional mortgage, but I use a small community bank, so financing won't be a problem.
I would like to know, the differences from a government rules standpoint? For example, I heard that you have to have a dedicated on-site property manager for some large units? What about the mechanicals, I have heard you need specialized equipment for things like HVAC, and hot water heaters. Can you please clarify the differences between residential and commercial real-estate from this perspective.
It all depends on your area and your local laws. Of the top of my head I dont know of any national requirements. Real Estate is always local. I live in Central NY and each surrounding county has different rules. I wont even begin to talk about rent control which is enforced only a 5 hour drive from me in NYC.
Is there a local real estate group in your area? If so join them and listen.
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