Why I'm quitting MTR Multifamily for Retail/Industrial

[Matthew Masoud]

I've been investing in multifamily for 2 years now. I'm up to 40 units. I operate my apartment buildings as mid-term rentals.

It's been a nightmare.

Returns are amazing but it's a full-time job. 

Tenants expect hotel-level services. Here are some examples.

- I had a guest call me yesterday at 9 p.m. asking for additional towels. 

- I had a nurse complain that the tenant was being loud at 3:00 in the afternoon (she works nights).

- I had a tenant call me about my couch not being comfortable enough. Threatened to leave if I didn't give them a new couch.

- I had two washing machines and an AC break down.

- I had a guest cancel a reservation because she did not know it was a 2nd-floor apartment and she couldn't walk upstairs

This all happened over the past 3 days.

After thinking long and hard, I decided I'd rather take a much smaller return with retail/industrial but with significantly less work. 

I quit my job to manage these rental units and to be honest with you all, I liked my engineering job better.

My plan is to hire someone full-time to manage these units (since that will be significantly less than paying 20%-25% for PM company).

Even after paying an employee, I'm still netting $400/door. I'm working on creating the systems and processes so that I can manage this person effectively from anywhere in the world. 

If this works well I may continue adding units but under that PM. I won't manage MTR/STR myself anymore.

Thank you for listening to me moan and complain 😂