More doors is more money ... right?

[Matt Oberski]

Hey all, I’m in SW FL, Fort Myers area. Definitely feel free to guess for here or to provide your own experiences/statistics.

Over the last two days I’ve had conversations with individuals who have no experience investing, but want to. Both want Cashflow, long hold. With person number one, he is thinking would like to try a multiplex. Around me, there are options everywhere from duplex to quad Plex in his price range ($400k). In your expedience, is the idiom,”more doors is more money” always true?

I know personally from a PM perspective it may bring more income, but also requires significantly additional outlay and expense.

We would be looking at a loan with person number one, and potentially some multi partner dealing with person two.

If more doors is more money, is it potentially better to have them work together? What experiences do you have with multi-partnerships versus single ownership?

[Steve Vaughan]

Originally posted by @Matt Oberski:

If more doors is more money, is it potentially better to have them work together? What experiences do you have with multi-partnerships versus single ownership?

It's not always more doors is more  money. Unless you're a pimp I guess. 

I just moved down from 17 to 11 with an exchange to a better age and class community. Couldn't be happier both financially and sanity-wise. 

I may consider partnering or managing a partnership up in the commercial 5+ unit space, but no way with a quad or less in the Fannie lending arena.  

More people is more problems, especially if both are new. Hats off to you for considering refereeing that. Bring your whistle and be prepared to hear of every squabble and be blamed if things go south. 

I'd have each get a small plex on their own.  Revisit the partnership idea later if things are working out solo. Solid partners have complementary skills and interests, not just half the dollars.