Difference between multi-family vs smaller buildings

[Bradley Jernigan]

Which would you rather own? I currently own a 42 portfolio between two multi-family buildings in Dallas, Tx. I am looking to scale to 300+ units within the next three years. One question I have is should I concentrate more on larger multi-family deals  (75+ units) or owning multiple smaller units. Buying a bigger multi-family building can offer higher rental income potential and economies of scale. However, it might require a larger investment, more management, and possibly greater financial risk. Smaller buildings may be more manageable and affordable, but their income potential could be limited.

[Allan Smith]

I've been told there's less competition at 20 to 75 units because the hedge funds and such don't mess with the smaller deals.

one huge advantage to bigger deals is they can support their own dedicated staff like a full time pm or maintenance man.

if your goal is 300 and beyond, the honest answer is go for the big fish. 75+. It's way more efficient. Instead of 5 closings, it's one. One underwriting. One capital raise. Etc. Slightly more effort but way more results.