the perfect range for investing in multifam rentals

Tacoma, WA · Member since 2013 · 19 posts · 4 votes

Hey bp community,

So recently just watched the youtube video (title in title) on youtube and felt compelled to ask a few burning questions. Brandon mentions that the best range to buy multifam rentals to avoid competing with the big guys early on is in the 5-30 unit range, so it got me thinking and here's a list I came up with;

1. Why are 5-30 unit apts more difficult to manage than 100+ unit ones?
2. When he says the "management isnt baked into the numbers necessarily, does he mean its cheaper to hire an on-site property manager vs one that has to run around?

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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
5y
Most people are looking for 1-4 units so it qualifies for residential financing. Big investors are looking for as many doors as possible. There are fewer people looking at 5-30 units, so lower competition gives you more opportunities.
A larger complex will justify on-site managers and on-site maintenance. You can typically get both of them for a reduced rate over hiring individual contractors or property managers. It's hard to justify a full-time maintenance person for under 30 units and you'll have to hire an off-site property manager to handle the property.
As for the second question, I haven't watched the video and don't understand the context.
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