A lot more information would be required to determine, especially the net cash flows from each of the multi unit properties. Do you have the financials for each of the properties? The level of risk associated with the cash flows also could be an issue.

% return numbers being equal, I would focus on the location and immediate neighborhood. All for the benefits of going larger from an economies of scale perspective but, your location will be your ultimate safety net when all else fails. If self managing 10 units may be a better stepping stone but, if bringing in property management (which I suggest) then going bigger is better :) Good luck!

For me the number of units would not be the deciding factor. The quality of the property long term and potential cash flow are bigger drivers. You have to decide what your goals are. I would rather have good cash flow and a high quality property then a better cash flow and a low quality property.

When considering a property look at the location of the property and which property cash flows. When you are doing your calculation to determine cash flow, make sure you subtract out 5% for management fees, 5% for vacancy, 2% for reserves and any other expenses.

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Updated almost 10 years ago on 05/21/2015. Most recent reply

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Mohabub MiahPoster

Troy, MI

Multi-Family and Apartment Investing

Multi unit purchase?

Mohabub MiahPoster

Troy, MI

Posted May 20, 2015 09:31

If you had a option to purchase 10unit or 20unit which one would you go with. Keep in mind this is your first multi unit purchase. Also everything is in place already bookkeeper, attorney, funding, management and maintenance. Mainly do you take a risk and jump higher or start off low. Thank you for your input.

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