Making the jump to commercial
I own about 50 apartment units in eight buildings. My banker and my friends tell me it is time to move up to a bigger building. I already own "commercial" buildings for lending purposes (over 5 units), but do not own anything big. In my area most buildings over 20 units have central heat and owner always pays for hot water. These are midrises as downtown Milwaukee is an urban area. Most of these buildigs were built from 1890-1970. I know mike is going to jump in and tell me to never buy a building where you pay any utilities, but I am convinced that with a tekmar system or something like that, that there has to be a way to run the numbers and make a living in big buildings (many guys do). In my investment area I shoot for $25 per door. Does anyone have any advice on buying B+ to A- buildings in A areas? Does my management style need to change from the way I run my small properties? Would you use a 55% expense factor or more with the common boiler and hall lights?