Go small or go big?

[John Warren]

Hi everyone,

I have done a ton of reading on buying both 2-4 unit properties and I have also done a good amount of research on buying apartment buildings. I believe that the larger apartment buildings is where I want to end up, however, I was wondering if now is really a great time to jump in or if I should be looking for more 2-4 unit properties for now. Here is my thought process:

1. I may not have enough money to get into some of the larger apartment complexes where economy of scale starts to take affect.

2. I can lock in 30 year loans at silly rates right now. I currently have one four-unit building at 4.2% for 30 years.

3. Interest rates are going to rise... I feel like prices may be a bit inflated due to the last 4-5 years of low interest rates. Won't prices fall once interest rates rise?

I would love to get peoples opinions! I would love to get into some 5+ buildings so I can do a value add strategy, but I am definitely worried about the interest rates rising on those commercial loans in the next few years!