Should I start small or go big?

Question

I'm a new investor liking to buy my first rental property. I've got a pretty healthy sum of money to start with, but I'm really scared of making a wrong mistake. I would like to start with just one duplex, but I've been presented with this opportunity to buy a small apartment complex here in South Florida. I really would like to buy the apartment complex, but I'm really scared to start out with my first property being an apartment. Which way should I go?

Eddie Gonzalez · Answer

Start right! If you're new you need to surround yourself with the right people to take the right steps. If you're looking into rental investments, small multifamily and commercial real estate come network with our team in Boca and get acquainted with people who are doing it already and there is also the possibility of partnering up in deals.

Gus Kazek · Answer

I would suggest going the small apartment complex route, more units give you better cash flow and the ability to scale at a much faster rate. You also don't have to depend on 2 doors for income. Look to go in on the deal with someone that has experience and can help you learn to manage at a much faster rate than you would on your own.

Jeff S. · Answer

At this time in the economic cycle I'd start small. Many values are starting to decline so don't be an investor just to be an investor. You don't have enough information out there to really judge if you are financially ready and able to do a larger deal. You will make many mistakes because the learning curve is steep if you don't know what you and mistakes can cost you big when you go big.

Pearly Tan · Answer

@Terrick Osborne

If you can find one, go in with a partner with either of the deals if that helps you feel more comfortable starting out.

David Espinosa · Answer

Of course thats asumming the numbers look good!

David Espinosa · Answer

I would personally start with the complex and house hack it.  I would also manage it myself to learn the ins and outs of managing. Having more than two will be beneficial when you experience turn over. Hope this helps. Happy Investing!

David Espinosa

Should I start small or go big?

Most Popular Reply