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Updated over 11 years ago,
Scale of start up- questions after BP podcast 14
Ok, so I just listened for the third time to: BP Podcast 014 : Cash Flow, Creative Finance, and Life with Ben Leybovich. First off- inspirational story, strategic thinking, time WELL spent to listen to that episode. On a personal note, as a son of someone who died from ALS (LuGherig's)- which is very similar to MS- Ben you are the man. You are planning for your family's future and are moving forward with your life!
Onward to the questions. Though the theme was cash flow and creative finance- there was an underlying theme of scale. Both Ben and Josh (if I heard correctly) said that they are more fond of what I term as "mid-multi units." Above 5- below 40ish. The spot where a multi is harder to sell, and has more potential for forced appreciation through the increased NOI on the property. I am still in the research phase, as I have the luxury of time, a good job, and a couple small businesses.
If you had the resources and were looking to be a buy and hold investor focusing on cashflow, should you wait to buy only "mid-multi's" or should you target conventional financed 2-4 units?
I found it really interesting when put in the context of William Knickerson's book. In the book he basically outlined "mid-multi's" as being part of a build up phase, and the smaller 2-4 unit's as being more liquid for the divesting stage.
I would appreciate any thoughts on the matter.