Would you do a 50 unit apartment for your first deal?

[Michael Delpier]

Looking for advice and a starting point. Would you do a 25 unit or 50 unit multifamily as your first deal? (I currently have 2 rentals, but they don't really count because I have a PM manage them)

Beyond the "you need to work up to that level" advice, what other advice or pitfall warnings can you give?

I have 2 places I am looking at. #1 is a 50-unit for $1.9M with rents averaging $650/mo. #2 is a 25-unit for $1.1M and rents at $650. Both are in low-ish income areas but not war zones. Both are around a 10% cap.

What are you going to need to actually buy the place.? I have 25% down and the properties are 95% occupied. What other ducks do I need to align? Is anyone even going to lend me the money on this given my nubie status?

What experience / tools / partners / team, will I need to make this successful. Obviously a PM, attorney, contractors and a handyman.

How much liquid reserves do you think would be necessary?

This is eventually the type of real estate I want to invest in. Just trying to see if it can be done out of the gate and/or what is actually needed to make it happen.

Thanks in advance!!!