Create your own multi-unit with 1 condo at a time

[Paul Camuto]

Hi, I wanted to run by the experts the current investments I have and what I have been seeing. I am in central/south jersey. I have accumulated 12 individual condos over 7 years in 5 different buildings in about 5 different towns. I get as high as a 9% cap rate and average a 7%. My strategy has been updated units in good areas equals great tenants (with screening) and it has worked.

I have been looking at multi-unit investments but they all at least the ones that are updated in my radius are getting about the same cap rate or lower. I also have to pay significantly more per unit to achieve that.

I am questioning why should I first pay and risk a larger amount for the same or lower cap rate?

Is my strategy of condo by condo, brick by brick on the right path, 15 condos, 20 condos?

I havent struggled with managing them individually, I cant think why I shouldnt stay on this path.

Open to the thoughts of the community.

[Demetrius Davis]

Hi Paul.  Interesting strategy.  It seems like a great idea, but of course condos have their down sides that multi-units don't share.  In every condo building there are factors related to the rentability of your unit that are out of your control.  I have been part of a scenario where owners were outvoted by other owners who wanted to limit unit rental to 2 years at a time.  That is my major concern about building a portfolio with lots of condos.  But as long as you have an exit strategy, you should be fine.