Multi-Family and Apartments

[Madison Holbrook]

Several questions!

I see a lot of posts about investing in duplexes to four-plexes but not bigger than that. 

 I understand that part of this is probably due to commercial financing. If someone were to have cash to buy a complex would there be that hesitancy?

 Are property managers hesitant to take on an apartment versus a four-plex?

 Is insurance on an apartment building different than a four-plex

 Is the owner put into a different category for taxes based off owning a complex versus a four-plex?

Is it because they can be more of a headache, complaints of "upstairs neighbor stomping, dog barking, baby crying!"

Is there a different sort of liability with the different properties?

Taxes?

Not sure if this should have been in the starting out forum or not.

[Christopher Hunter]

@Madison Holbrook  Hello Madison.  You have a lot of great questions.

1. I think investors get into the small units to get there feet wet and get familiar with investing.

2.  Investors spread their capital out to get more deals

3. Yes insurance is different based on liability 

4.  Taxes are based on property value 

5.  Yes there is different liability issues.  That is why there are A,B, C, D class properties 

There is no bad place to start.  Here or there.  You will get great information either place.  2-4 units is the small stuff that you can get regular financing on.  Once you hit 5 units it is time for commercial lending and different parameters.  Have fun learning.