Too few eggs (multifamily units) in one basket for 1.5mil

[Tony Karns]

I am currently searching the multifamily market for deals comprising I've no less than 5 units and I would say no biger than 50 units. Depending on the market that I look at some of these properties can range from under a million dollars to the top for 5 million. I recently looked at a couple properties in Dallas where a multifamily with under 10 units is listed is listed from about 800,000 to 1.5 million.

Here are my thoughts :

If I had the money to purchase any one of those properties from 1 million to 2 million price range I would probably want to get something that is more than 10 units so that I could spread out the potential risks of vacancy and late payments and potential downsides that renting multi families comes with.

Now I know many people will say well the Dallas Market is a very strong market and there's a lot of appreciation, and fairly growth in a multitude of sectors . So here us the question:

Is my perspective on spreading that risk across a larger amount of units unrealistic or is that something I should consider but make it per Market bases?

[Greg Dickerson]

It's really all about the deal. You want to buy the most NOI for the dollar you can get.

I wouldn’t be concerned with the number of units if the demand and occupancy is strong historically.