Do you own a 8-20 unit MF apartment out of state?

[Hardik Patel]

Hey Everyone!

It almost a given that having an on-site property manager for larger apartments (25+ units) will yield better ROI and is the right way to manage larger complexes. However, I see very little info here on how investors are managing their mid-size (8-20 units) multi-family apartments (especially ones that are out of state). Are the local property management companies often interested in dealing with these type of properties in B areas? Most of the forums I read about hiring property management companies are for SFRs, I need more insights on how to best plan for managing a mid-size MF from long distance. Looking forward to learning about it from your knowledge/experiences and how you manage them. TIA!

HP

[Todd Dexheimer]

Originally posted by @Lane Kawaoka:

This mom and pop investor route especially when not present is very dangerous. You have the worse lending terms (Recourse debt) and all your money is into the deal as opposed to a syndication where you can spread your money 50k here there everywhere.

 I wouldn't necessarily call what he's talking about mom and pop investor. Yes if you buy one or two properties and kind of half self manage them, but if he is being professional and set it up properly then I would disagree with the "Dangerous" notion.  I went from $20,000 to over a $15mm portfolio with this dangerous Mom and pop model.  I would not have gotten there by investing $20,000 in other peoples syndications. 

 I'm a big proponent of large multi family and syndicating -  this is actually what I am doing right now. There are many real estate strategies that work very well and buying smaller apartment buildings renovating them fixing them and re-financing them is a fantastic way to build wealth.