Investor · California, CA · Member since 2016 · 117 posts · 26 votes
As a midsized apartment building (8-20 units) owner living out of state and using a manager... how passive is your investment? How involved are you? How much time is spent? How many trips to the property to purchase? How frequently visit after purchase? Obviously every situation different, living local to my properties I visit semi regularly, now looking to expand out of my local area.. thoughts...?
Rental Property Investor · Glen Rock, NJ · Member since 2015 · 3k+ posts · 2k+ votes
6y
@Tony F. The most critical piece of the puzzle to have reliable "boots on the ground". It can be done in a variety of ways:
1) potentially partner up with someone local
2) maybe you have a close friend or family member that can/want to help
3) build a team that you'd trust (f.e., property manager)
None of it is easy but achievable. Also, as you may know there is a direct correlation between the risk and reward. Hence if you avoid going into more problematic areas that may potentially achieve very high rewards but also offer a lot of risks, you may be in a better position by simply sticking to the middle ground - decent neighborhood with very little trouble.
Investor · Indianapolis, IN · Member since 2015 · 764 posts · 953 votes
6y
@Tony F. agree with @Alina Trigub. At that size I would stick to newer assets. Less value add but far less risk. What target return (CoC, Equity Multiple, etc) are you looking to achieve? That size of an asset will require some or a lot of "asset management" on your part.
I have owned 6,15,30,35,60 unit deals in the past and I'll likely never buy another one. They were simply a necessary stepping stone before going on to much bigger deals. As a business model they required way too much owner attention for the cash flow. Not a enough juice for the squeeze! The assets were too small to run big and too big to run small.
My advice; stay small and local or find experienced partners and step up to "site managed" assets of 100+ units.