Would diversifying to SFR make sense

[Doug B.]

Currently have a 78 unit apartment complex that currently manage in house. Have a excellent non-recourse loan and assumable when time comes.

When this is put up for sale a 78 unit complex numbers are tight when a property management company is in place. Management in this area is 8% + and manager / maintenance wages are high. Need more doors to be attractive if not independently managed. ( If % rates goes up we do sit perfect tho) Other Multi- in area is limited that is for sale or the price is not workable.

So my thoughts are to start buying some single family homes as our market is still way down. Have 1 under contract and would like to have more. Having the apartments every day have traffic of family's that need a house because of their size and current tenants that are wanting a house. On my end getting a house occupied is not a worry. It is just what it will bring to the table when the complex is sold. All the homes would be in a 1-5 mile radius.

Would having SFR's that is positive on equity / revenue along with a 78 unit complex work down the road next 3-5 years when put up for sale.