An Argument for Small-Multifamily

Today we are going to talk about the pros and cons of investing in small multifamily properties versus large multifamily properties. The way we operate is that Pili will normally take over the fix and flip aspect of our business. Small multifamily is just another exit strategy for me so if the numbers work then why not? you make the numbers work so when you get a property and it's a single-family property or it's a two to four-unit property then you have three exit strategies:

You can either buy hold which is your small multifamily buy and hold, you can flip it or you can wholesale it. We try to do all three because it makes sense but like any multifamily project you have to make sure you have all your numbers in there especially in terms of management. I know a lot of people when they're first starting they think they can just manage it themselves, but, if you don't put those numbers in there from the very get-go you'll always be trying to catch up, so put those numbers in there. If this is your first one, pick up a few and once you get up to ten you can start treating it like it's a large multifamily chain with some of the other numbers they should be looking at. There are multiple expenses and you need to follow everything you do when you look at large multifamilies, we're talking repairs and maintenance, utilities. If you have X utilities you look at that turns everything in management straight down the line of everything you'd be looking at from any property.

More than any property, no matter what, even if you're looking at it like for a regular flip and you just look at the numbers, make sure your numbers work no matter what. It doesn’t matter if it's small or large, or, I don't know, yellow or purple make sure your numbers work. If you're already in the small multi-family to single-family arena, then going into small multifamily just makes sense now.

If you are going to look for in a property manager, and you’re wondering what kind of property manager you should be looking for, well, I would say I would you're going to want to find somebody that's local, that can take care of all the properties at once especially, if you are looking at properties in the area you live in. But if you’re looking for properties far away, for example we have a friend who lives all the way in Shanghai and she has properties in Texas, she found somebody local that takes care of all of her properties, they manage it she just takes care of the finances.

I'm here promoting single, two to four-unit multifamilies there are no downsides, there may be a few points that make it harder. Anytime we talk about multifamily we always say the large multi-families are so much better because you have everything under one roof. Therefore, it'd be far harder to scale if they’re separate properties.

To learn more about multifamily follow the link: 
https://www.multifamilyfoundation.com/order-28415099