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Updated almost 4 years ago on . Most recent reply

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John Gach
  • Buffalo, NY
56
Votes |
62
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Why to buy larger unit buildings vs 2-4units?

John Gach
  • Buffalo, NY
Posted

Say I have $200k to invest in downpayment s and purchasing MF buildings. Seems like the larger unit buildings don’t have as good of a return?

I plan to be in this situation by next year, and I don’t know if I’m better off buying the largest apartment building I can find or if I should just buy a bunch of doubles, TRI- and 4 plexs?

Goal would be best return on my money.

Most Popular Reply

User Stats

220
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228
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Lee Yoder
  • Rental Property Investor
  • Lebanon, OH
228
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220
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Lee Yoder
  • Rental Property Investor
  • Lebanon, OH
Replied

You pose a good question @John Gach and you've received some great answers so far. This is why BP is great!

I totally agree with all the benefits that @Elizabeth M Williams detailed so well in her posts regarding apartment syndication. I am an apartment syndicator myself in SW Ohio and I pretty much agree with everything Elizabeth said. However, I do still believe you will make more money buying your own properties vs. investing passively in someone else's deal IF you buy right and manage right (and those are some big "IFs"). 

I also think @Evan Polaski makes a great point about how difficult it is to find four good 4-unit properties to purchase vs. finding one good 16-unit property. I would add that it is much easier to manage one 16-unit property as compared to four 4-unit properties as well. 

Good luck John and God bless!

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