I have done SFR in the past in my local market when I lived in North Carolina. At this point though, I need more scale and want to move into apartment buildings. I am in the DC area, so its tough right now due to values, so I am focusing on properties in the Southeast in a handful of select secondary markets.
The biggest issue is that I do not have people in place (the infamous "team") to enable working from a distance. Enter the 6 plex.
I have line of sight to a 6 unit building in my target market that will likely meet my investment criteria from a % perspective (e.g. CoC, Cap Rate, etc.). My goal is to get to 75 units in the next 5 years, so I worry that 6 is just too small. That said, I love the idea of mitigating my risk, building a team, and learning on the job by doing a trial run with something that is manageable.
I would love to hear from investors with larger building on this one. Is it worth it to learn slow this way or be patient and jump in with something larger (say 20+)?
I think you answered your question in the way you described the opportunity. It seems to me that you like the 6 unit deal and think it's a good one. So, take this step towards your goal now. Then it will be 6 down and 69 to go!
George Hermann, Halstead Property, LLC
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