Small complex or 3-4 unit properties?

[Eric James]

I'm in the process of moving to TX and am purchasing a primary residence. I asked my mortgage broker approximately how much my DTI ratio would allow me to purchase for a multi family property(s) and was surprised to learn it's high enough to allow me to purchase something like a 10-15 unit property, or alternatively 2 (or maybe 3) triplexes or 4-plexes. I've owned a triplex for the past 7 years. Eventually I would like to purchase a small apartment complex, but I don't know if I would be better off going the multiple triplex/quad route first, and then later trade up. Do you have any thoughts on the advantages of each possibility? Thanks.

[Patrick Liska]

Eric,

which would be more profitable for you ? 1 unit with all the apartments under it, or 3 units? compare your expenses vs income, and try to predict future appreciation. it may be easier to manage and maintain on unit rather than three, but the three units may pay more taxes than the one. will the rent be the same or can you charge more for the 3 units than the apartments in the 1 unit?  you are going to need to run the numbers and make a comparison, it's not a matter of preference but a matter of profit in that situation.