Larger apartments Vs Smaller Apartments

[Tony Nguyen]

Hi all, For the past 6 months I've been looking for 20-30 apartment units to purchase, but have been having a hard time finding deals that make sense. They're selling at 8 caps stabilized with not much value add opportunities availability in the centra Florida region, if any at all. I was wonderig if anyone has ran into this challenge and opted to buy several smaller properties instead of just 1 large one? I was debating of buying several 2-4 unit properties instead of just 1 larger 20 unit. Any insight would be appreciated, thanks!

[Steve Olafson]

Have you looked close enough at the market to make this determination?  My experience is that the smaller properties will come at a higher cost per unit.  Then you will need to drive to each one to rent and maintain.

Look closely at the cap rates.  I tend to not believe them thus don't even use them.  I simply look at rental income and cost per unit.  I also factor in how desirable the units are for the renter.

It is hard to find upside these days.  But I don't know how it will be easier by going down to smaller units