Laveen, AZ · Member since 2016 · 584 posts · 528 votes
I'm just curious from a general discussion point of view. I understand it's all about the numbers and comparing the would be deals to give a definitve answer, and obviously it makes more sense to go with the option that produces more proft. With that being said, generally speaking from those of you who have experienced both or had to decide between one or the other:
As an investor, compare and contrast the benefits/disadvantages if you had the same amount of resources to purchase several multiplexes with fewer units each vs one larger multiplex with many yet nearly the equivalent number of units (i.e. you can buy four 4-plexes or buy a 16 unit property with the same money)? Again, generally speaking, and I understand it varies by market and prices and other variables etc....
Plano, TX · Member since 2013 · 226 posts · 156 votes
9y
I have never done fourplexes, but did make a decision to focus on one thing, so spent many months researching single family, small multi, and larger multifamily. I chose larger for several reasons. Most having to do with economies of scale. Management is probably the biggest. A 16 unit property won't support on site staff, but just a little bigger and you can hire part time people, or have a resident handle leasing and maintenance for you.
Valuation is another big reason. Larger properties are valued on their income rather than comps so easier to increase value.
I will also add that 60 units is FAR easier to deal with than 16! So find some partners to go in on a bigger one rather than 1 smaller!
Minneapolis, MN · Member since 2013 · 2k+ posts · 1k+ votes
9y
several sites,, is cost of property taxes on each location,, more roofs, more furnaces, more water heaters. the big items that cost $$$ to replace or pay.. and your running back and forth to remember where you lost your screwdriver...
One stop shopping is best.. if you can get a decent size property with 1 or 2 mid size bldgs 24 unit each or under 50... then one person should easily be able to manage it.. with 1/2 time maintenance guy caretaker.. anything over 100 units is pretty much full time job for a property manager and a maintenance tech,, depending on age of building..
It's whats available today and gone tomorrow story,, you never know what can come up for sale..