Multifamily - Worth The Headache?

[Brandon Turner]

Hey - just wondering how many multifamily people we have out there and if you think it's worth the headache?

[Thom H.]

I own almost all MFR's (currently selling my only remaining SFR). I've always read how everyone says MFR's have higher turnover, but thats not my experience. I bought one MFR that came with long term tenants (one has lived there since 1982, another for 16 years). I have several others in various eight-plexes that are 10+ years, and more than 70% of my tenants are 5+ years. My units are middle of the road, blue collar type units (not lower income, but i do have a couple of Sec 8's, and they are good tenants). As with any investment its about the numbers, and ultimately the returns. I just find better returns with MFR's, due to the economies of scale in my area. I know there are reduced numbers of buyers when selling larger MFR's, but with strong returns, I have no desire to sell. My kids can deal with that "lucky problem" some day.

From my perspective, use a good PM and the only headache you have is remembering to enter the direct deposits each month! ...voting (and loving) MFR's in Virginia!