Finding the Right Investment Opportunities

[Jorge Abreu]

Understanding a property's unit count is crucial when assessing investment options. Size determines a property's profitability and management efficiency.

Property managers regard smaller properties as less profitable, whereas larger properties allow for smaller operations and an on-site property manager and maintenance crew.

Handling under 20 units requires hands-on work. Scalability is difficult even with a third-party management business. If each property has 30-80 units, hands-on management is needed. Finding a third-party management business that can staff and manage these units is difficult. This increases unit expenses and lowers income ratio compared to properties with 100+ units. In such circumstances, in-house self-management with temporary leasing and maintenance employees is best.

Comprehensive approaches with on-site staff and a leasing office are possible for 80–100+ unit properties. Every 100 units should have a Property Manager, Leasing, Assistant, and Maintenance, Porter, or Make Ready.

I recommend houses with many units for maximum efficiency and profit. When there are 80 or more units, an in-house property manager, leasing agency, and maintenance staff are feasible. This eliminates dependency on third-party property managers, improves operations, and ensures quality management.

Investors should target buildings with efficient operations, even though in-house management is best between 80 and 100 units. The range depends on salary and expenses.

Real estate investment success depends on balancing property size and management capabilities.

Potential investors must consider these factors when evaluating properties. By understanding how property unit numbers affect management efficiency, one may make informed decisions and avoid expansion barriers.