Is it possible to scale Single Family and small MF???

[Yonah Weiss]

I had a great conversation with a friend yesterday who owns over 100 units, all of which are 1-8 unit properties.

He told me he is looking to scale up into larger multifamily properties 40-100 units. His claim was that he could not scale. He has a full time 'handyman/contractor' on staff , and all of the properties are within a 20 mile radius. However, the expenses of all of those small properties, including turnover and rehab just does not produce enough cashflow.

What do you all say? If MF the only option? Or do you think he can scale buy more of the same kind of properties?

I have invested in SFR, and am passionate about MF, so I encouraged him to go for bigger properties.

[Kenneth Garrett]

So Warren Buffet's Group (Invitation Homes) own 82,000 SFH. He bought at a discount during the crash and originally was only going to hold for 5 years. They still own them 7-10 years later. You can scale anything it just depends on your own definition of scale. Is your plan to hold property forever SFH works great. Cash flow on sfh should be greater than MF per door. Example cash flow per door on MF might be $150-200 while sfh might be 400-500. Selling a sfh is much easier then a MF. There are benefits to each. Scaling is all about perspective.