Hey guys Im new here gound a lot of great info. Fast background: I have a big food service company in Mexico for the last 18 years, started it myself. I started to invest buying apartments in Tucson Az 3 years ago. Have 10 apartmentrs already. Small cashflow but all positive, they have been going up in price. The question I have is I did not buy multifamily realestate, but bought single apartments in three diferent apartment complexes. Where you habe to pay Hoa and everything. But I only hear in the blogs and the podcast that everybody recomends buying duplexes and fourplexes or entire buildings. Is there pros and cons of buying single apartments in diferent complexes. Like I said I have 10 already that are cashflow positive put down 25% on each. Apreciatte the advice
You get a lot less control when you buy one unit out of a complex. Like you said, there's the monthly HOA fee. You can also get hit with special assessments, which can be enormous. I don't think they're necessarily bad deals, though. Just like anything else there are good and bad.
Some folks like the multifamily space due to the leverage piece: purchasing 2-4 units (more if commercial) on the same loan, vs. 10 loans for 10 units as you currently have. You could theoretically 3x or 4x your units under management by selling off each appreciated condo/apartment and transferring that money into multifamily units.
Robert Kiyosaki called that strategy "trading 4 green houses for 1 red hotel" in Rich Dad/Poor Dad. More broadly: re-leveraging your equity for higher cash flow. You're past the beginner stages of investing where the goal is to simply do a deal or two & learn, and subsequently have more options now.
Really the question is: what is your investing goal? To increase your monthly income? To consolidate your portfolio into fewer, multi-family units that are more straightforward to manage? To exchange your equity for a more passive income stream, like notes?
@Patrick Allen thanks for taking the time. My goal is to keep doing what I am doing in my businesses but start putting money away in real estate in properties that can cashflow and apreciate and give a steady growth in wealth. Not looking for an inmeadiate a cashflow stream or an inmeadiate aprecciation but instead a little bit of both and build wealth over time. My mother lives in Tucson and she helps me out managing the properties so thats great. But dont want to get into low level bad tenant type of deals or into a very ground work everyday type of investment. But instead a more medium to high level tenants. Not that much work on a daily basis and build wealth over time. Thats why I bought these apartments in these medium to high level areas.
Again thanks for the time.
Sounds like your now set up for Airbnb. Look into if a few or all of your current condos would cash flow better as weekly rentals, especially if as you say they’re in better locations etc and include amenities.
Then going forward keep this same model or start investing multi family.
Just another way to go.