Is it wrong to go BIG for first deal??

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I have the funds up to $200k. Been loOking up to $1M multi family apartments for a first deal!! Seems more attractive to me than buying a few SFH.

Am I biting off more than I can chew for first deal?! Please any advice would be great 

Updated over 3 years ago


Well, you wouldn't be the first person to do that, but if you have no experience with real estate that's a pretty strong throw of the dice. Most things that apply to smaller units apply to larger units, but magnified. No one can tell you what to do, but let's put it this way - if you were my kid, I would tell you to start with something smaller and learn the business first. 

My first deal was a 48 unit, never did single family at all myself.  

Having said that, it's definitely not the easiest route but I'm very glad I did it that way.  I did have someone walking me through the process from beginning to end including the sale a little over 2 years later.

If you have someone to lean on I would always "go big".  The quicker you can develop scale the easier it gets if you do it all yourself (management).  My 300 unit is easier than that 48 unit; I have more and better quality staff to handle all of the day-to-day and I get to just lead the team.

I completely agree with @Bruce Petersen . Since you have the financial means I would say go for it. I would recommend partnering with someone that has experience and learn as much as you can from him. Another idea is to partner with a property management company which creates an alignment of interest. 

Many experienced investors say they wish they would have gone bigger sooner.  Your intellect and work ethic will determine if you are capable to do that and we don't know those things about you; so, we really can't answer the question.

Real estate investing is not complicated but it does take persistence.  Sure, a smart hardworking person, with little experience, can take down a $1M property with the help of a broker, lender, and a management company.  Good luck with that journey.

@Jonathan Ruiz , yes I worked with someone experienced in my local area.

What @Mike Dymski said is key, you have to be self aware.  You will have challenges on every deal especially your first; are you mentally prepared to get kicked in the teeth and get back up?

RE is no different than any other business you would start, don't fall into the trap of thinking this is"RE" and not a real business just like opening a restaurant etc...  Approach this the same way knowing that things will go sideways from time to time.  Do you have the intestinal fortitude to stomach these times?

Either way, Good Luck!!

everyone thank you so much for the words and inspiration ! I know it’ll be a journey, but i am definitely willing to put in the work and learn! Because I know this is what I want to do with my life