Strategy Check: Bigger single MF or multiple smaller buildings?

[Joshua Fass]

BP Team,

If you have $750k (unleveraged) to invest, and you plan on leveraging, what is the right strategy (and I’m sure there is no singularly correct answer)?

Acquire a single building with 30 units or perhaps go smaller and do a few acquisitions that ultimately get to the same numbers (NOI target, Cash on Cash return, etc).

My concern is that if I put it all into one larger investment, it may take me longer to be able to leverage and and expand.

As always, your thoughts are greatly appreciated.

BR,

Josh

[Jon Crosby]

@Joshua Fass I think a big difference is your team and existing skillset to handle a 30 unit building? Running a bunch of small SFH it's fairly straightforward but operating a larger commercial grade multi-family is a completely different animal. If you got the skills to do it, then I would personally do that assuming you have enough capital set aside for not only acquisition but rehab and turnover stabilization as well (assuming you are doing value add investment). A commercial property is going to get your value up faster since the value is based on NOI and all those SFH values would be based on comps.

Best of luck!