First deal size considerations - how big is big?

[Alex S.]

*assumes CA averages for valuation, rent, profitability, et

There are strategies for starting small or starting big, that are discussed but I am not entirely sure what would be like too big for a first deal...

My inclination is to assume that the larger the asset or more units the better, as there is less tenant risk, professional property manager, etc. BUT the larger the deal the harder it becomes to pursue a rehab strategy with meaningful impact on appreciation. 

Question:

How big can a new investor realistically go if they expect to borrow 60-65% on anything above $10M? 

If a lender sees that there is a strategic GP involved and LP capital committed, there shouldnt be any issue with the loan?

Why not try and raise as much capital as possible? Is there any reason why going bigger is bad when leverage is not excessive and underwriting is conservative?