Big picture - Multiple rentals into one big endeavor

1 Reply

I purchased my first rental 2.5 years ago. Currently, I have 8 rental units, in two different states. I manage them all myself. Some more hands off than others. I'm thinking down the road. Ultimately, rather than having a house spread out all over, I would prefer one big multi family (apartment) or potentially move over into commercial real estate (would still have a lot of learning to do on that end). I'm curious to what other investors have done in this situation of monopoly (small house, small house small house, then hotel).

I've put a lot of money in on repairs and appliance replacements on some of these rentals, so I wasn't planning on selling soon. I was planning on continuing to acquire 2-3 more properties each year for awhile. However, if I were to sell all of them, I'd be sitting on a decent amount of cash to use toward one large purchase. So far I've thought of large apartment, commercial real estate, or becoming the lender.  I would be interested to hear anyone who has made these transitions, or what other transitions I may want to consider?

@Ben Kirchner

I'm in the middle of this transition - I have actually modeled my investment strategy exactly like the game of Monopoly - I spent the first several years acquiring property - I would buy everything I could ... that started out with lower end, cheaper properties - then I moved up in class and sold some of my lower end stuff .... currently I'm selling several to move capital to apartment syndications - I plan to "observe" the apartment business and learn the ropes (a different world from single family) while investing in syndications - then buy one of my own... but I may just keep my money flowing into syndications in the future... the passive aspect seems pretty attractive.

Good luck and Happy Investing,

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