Scaling Up From 4 Units to Bigger Multiplexes

[George M.]

Right now I have a handful of 2 and 4 unit properties. I have seen the benefits of multiple units under one roof, foundation, etc...

My current properties seem to be reasonably profitable over the last couple years. The next steps we are considering are adding more 4 units vs. higher unit properties. I’m concerned about the “grass is greener” outlook for higher unit properties vs the 4 units that we know.

Can anyone chime in that has made the jump to higher unit multiplexes? Pros/cons/regrets/wish you had scaled sooner?

Thanks!

[Bjorn Ahlblad]

I had SFR and duplexes before jumping into a 12 unit single building and there is no looking back for me. Price per door is 55K in the 12 unit; price per door is 200k in my duplexes, and rents are only double. Yes, they are in different locations; but still. Drawback is it is much harder to find that winner 12 unit than it is to score a good duplex; but it is hard to look at duplexes any more. Duplexes are easier to sell and appreciate faster; so having both in your portfolio is a good idea.