Updated: Mar 15, 2021
The majority of people are looking for very similar kinds of deals because they think it is the only way to make good money in real estate. With that being said, here is what I think. There is a sweet spot in the multifamily investing business.
There are a lot of people who go straight for single-family especially people who are just starting out. They go for single-family homes and perhaps step up to a duplex. But that is not the sweet spot of real estate investing. Even if they move to multifamily properties that range from 5 to 40 units, it’s not what makes you wealthy. And you don’t need a team of professionals to manage this for you. You manage it yourself and it is often poorly managed because a new investor with little to no experience cannot manage a property well until he had help.
So what you can do is focus on learning and get good enough to add value to the properties you invest in and improve each property to its full potential and then learn to manage the property like an excellent landlord.
Then you can build a capable team and go for bigger units like a hundred units property. And that is where you can build a sound cash flow and strengthen your portfolio.
But you can start with these small properties say 4 5 units to up to 30 units and put in the work and learn to upgrade to Class B or Class A property. This way the value of the property increases as well as the rents.
So, the takeaway is you can start your multifamily journey with this strategy and it can give you a taste of multifamily property investing and give you a good experience in terms of holding and managing multifamily properties, unlike single-family homes.