Competing with Large Multi-Family

[Justin Egge]

Morning All,

Branching off a previous thread (linked below), consideration of a multi-family strategy has come around again. Not my current focus (SFR), due to a few primary reasons:

• Higher transience = more issues
• Lower grade tenant, on average
• Market saturation 

That last item is the largest concern. With the long bull-run there has been an explosion of large multi-family construction all over the twin cities, inner city as well as suburbs. An example: Springs at Apple Valley, https://www.springsapartments.com/apartments/mn/ap...

Less focused on the location, and more the concept below. 

Two queries: 

• At what size do small multi-family structures begin to see competition from the larger outfits? (all sizes, only once you hit a 10-unit structure, etc.)
• For the current small multi-family investors, has the explosion of large multi-family impacted your strategies in recent years? If so, how?

Original thread: https://www.biggerpockets.com/forums/566/topics/63...