Rehabber, Landlord, Marketing, Wholesaling

[SteveO]

1. In the big space you are forever competing with money whose agenda is very different from yours - this is very much a limiting factor. In the small space it is easier to find deals.
2. Also, to get to a pint where you can take down $100,000 passive requires an uncommon amount of intellectual worth. And the only way to develop it is by doing smaller deals. This is why most people loose money on apartments, and the only saving grace is that via leverage we can drive the IRR...

You should have that intellectual worth by the time you build the money.

I have dealt in the big space before. There is a way to play that game but you must have the resolve to be willing to go counter the market cycles. Buy when the reits are selling and vice versa. But I do agree with you that it is easier to play the mid-size apartment game. I like the 20-80 unit range.

 

[BrandonS85]

There are issues with what you're describing though, Steve...

1. In the big space you are forever competing with money whose agenda is very different from yours - this is very much a limiting factor. In the small space it is easier to find deals.
2. Also, to get to a pint where you can take down $100,000 passive requires an uncommon amount of intellectual worth. And the only way to develop it is by doing smaller deals. This is why most people loose money on apartments, and the only saving grace is that via leverage we can drive the IRR...

There are issues with what you're describing though, Steve...

I agree in the sense that $100k/yr net deals are few and far between and do take a good deal of skill level to complete, however there's plenty of deals I've run across in my local area that were $40k-$50k/yr NOI deals that would have worked out pretty well for a semi-seasoned investor as long as you paid attention to all the nuances of the local area.