Bigger Picture. MF Units/SF Units (UNITS R UNITS!!!)

7 Replies

Ok so I am back in the saddle and I am looking at buy and hold real estate. I started my investing years ago as a flipper however now I am ready to purchase buy and hold properties. Since I have been back researching properties my goal is to purchase multi-family units. I am online looking at properties and what I have been looking at is out of my price range. When I see the prices I say that I may need to save for about 5 more years to purchase the building that I want. I have listened to Grant Cardone over the last five years and it is embedded in my brain that I should purchase at least 16 to 32 units.

However I say to myself why would you wait to purchase in five years when you can purchase single family units now. I have the money, ability and know how to buy, fix, and hold. It is even more evident when I run the numbers that I should be purchasing SF units out of state. I feel that in five years I can have 100+ sf units. However if I wait to have the right amount to purchase that 16+ unit building Ill be even further behind where I could be in sf units. please leave your thoughts and advice on my UNITS ARE UNITS dilemma. 

My though is this especially when you are smaller, focus on the deal and the spreads.  The smaller stuff might make you work more, harder, less efficiencies of scale. But if you do the right deals, they can be the capital that keeps building for the bigger stuff.Im thinking that most won't agree with this strategy but really try to get the best deals with the most upside ( and understanding what risks there are) as long as there is an operational plan in place for mgmt. 

@Account Closed buy now.... property appreciation will far outgained the 1% your cash is getting from a savings account. Then, use tax deferred methods to transition into larger units.

You're right, sitting for 5 years will put you 10 years behind. Grant Cardone doesnt live in the real world, and doesnt seem to have a solid grasp on RE investing, unless you're investing in his investments....