To leverage or not?

[Nick Maugeri]

I connected with someone recently that said they are paying $600K cash for a 6 unit that is going to generate around $110K in GOI per annum. Wouldn't it be better to put that $600K towards a 16 unit apartment complex? 

What are your thoughts regarding scaling laws, leverage, and our 'high' interest rates? 

[Ethan Gidcumb]

Hey Nick,

When you're considering if it would be better to invest in a larger asset, I think it would be smart to consider the NOI of both assets and what kind of overhead is involved. Additionally, in terms of leverage, how much does the 16-unit cost?

Does the borrower have any experience?

I hope this post helps pose some new questions and inspire thought!