Bigger Purchase vs. many smaller?

[Anthony Abdullah]

I have a question for the group and would like some opinions, particularly if you have lots of experience. Anyway, I started off with student rentals which are single-family homes, but operate like multifamily, because you charged by the bed if that makes sense. I have accumulated several and I would like to make a bigger move to larger multifamily of 20+. The only reason I would like to move up really because I feel like I should.

My question is should I? It's easy for me to get these single-family deals, the returns are very good, and I have a great manager. These things are making me money, so should I save up for something larger or keep buying these single families whenever they become available. Keep in mind, all I do is a student rental. Thanks and I hope that makes sense. 

[Greg Scully]

@Anthony Abdullah - There are many benefits that go with moving up to larger multifamily, specifically the tax benefits.  It my be worth diversifying into the commercial space to offset some or all of the earnings from your student rentals.  Look into "accelerated depreciation" and/or "cost segregation", basically the depreciation from the commercial building is used to lower your tax liability.  I would bring it up with your CPA.

Student rentals (commercial) are considered a sub category of multi-family, especially when it comes to lending and management.  You might have more success in that niche considering your experience.