Very simply, multifamily spreads out your risk if a tenant moves out generates more income with more units and disproportionate amount of increase in expenses as there are more tenants to deal with.

Based on your post, it seems you may be focused on expensive "appreciation" submarkets vs inexpensive "cashflow" submarkets.  

Emerging markets with inexpensive housing and consistent development might also benefit new investors.

@Christina ColonIt sounds like this tenant could be a problem in the future - however, if you boot him without planning and your place sits vacant for a month or two, you're likely down a few thousand dollars instead of a few hundred bucks for landscaping.If the landscaping costs are relatively inexpensive, you could plan to not renew the tenant, start showing the property to other tenants a month or two before lease-end, and have a new tenant (who won't complain about handling landscaping) begin renting within a week or two of the problematic tenant moving out, thereby saving you lost rent on your place sitting vacant.

Nicholas - what advice would you give me to help change this perception that BP has made everyone feel like they’re missing out, even if that means investing in expensive deals?

A lot of investors based in expensive markets such as Las Vegas are choosing to purchase their investments OOS in the Midwest because of the affordability and numbers making more sense.

here are my stats on 6 months being with them (not by choice but they acquired the property manager I had in chicago) I have 22 units in 4 buildings    Rent 22.5% lower rent      Expense 34% increase in expenses Also all expenses are way above market rate with minimum oversight for vendors overcharging or proper negotiation for volume work.

That seemingly lucrative deal of $1,800 will be eaten up in expenses quickly.

If pex then its a none issue, very inexpensive to replace all HOWEVER, the buyer SHOULD have known this BEFORE submitting the offer. 

If you need to ‘snap  increase”  then by a large margin… give your tenants extra notice and just advise them that due to significant increases in expenses we must make some pretty major increases to our rents , but I’m giving you ample notice to either prepare for this change or to plan to find a new living situation.