One multi unit building vs several less expensive units.

[Scott Rabin]

Lets say I have $1 million to work with.  What are the pros and cons of owning 1 multi unit building vs. 4-5 houses as rentals for the same money?

[Steve Olafson]

Multi family has a number of advantages.  With a million dollars, you could buy a 5M building.  Your maintenance and management are all in one spot.  If you tend to buy and sell, it can be done in one sell transaction and one purchase.  Makes for a much simpler 1031.

Forced appreciation becomes much simpler when you are dealing with one building.  If you purchase a "c" building in a "b" location and wish to increase income through upgrades, you can do it all in one location dealing with only one transaction. 

So if you increase the value of the property by increasing the income, sell and make a million, you can now buy a 10 million dollar property.

Let your staff deal with the picking up of litter and the tenant details.