42 unit “passive investment” is this possible?

[Evan File]

I’m a relatively new investor and have the opportunity to buy a 42 unit complex roughly 2 hours from where I live. The current owner is out of state and there is an on-site manager who has managed the property for over 10 years. I only have experience with a 4-unit that I own currently so this would be quite the leap for me. I know investing in real estate is never completely passive, but from those of you with experience in larger properties like this, what types of situations typically come up that the owner has to resolve or become involved in?

[Theo Hicks]

If you will keep the onsite management, I recommend setting up a weekly performance review once a week. That way, any issues that come up can be addressed. 

Or, you can communicate with them on an "as-needed" basis, which is what I do for my 12-units. I ask the management company to reach out for any expense over $500 and whenever there is a vacancy so we can determine a plan of action in regards to what repairs/updates to make and how much to charge in rent. But once I get more than 30 to 40 units, I plan on setting up a weekly call.

If your goal is to be 100% passive, I recommend researching apartment syndicators and investing in their deals.