There are many factors you need to consider up front that may eliminate alot of properties. Same basic rules as homes, just a few more details to pay attention to.

1) occupancy, turnover, and length of terms of existing tenants (will they leave on you)
2) condition of the units and competition of other complexes
3) my investors terms "price per door" how much is each unit costing?
4) on site management required?
5) cap rate, income analysis, taxes, maintainance
6) metered individually or together for utilities
7) location, location, location

I dont really mentor, but I work with many experienced investors who purchase multi-family units from 10 units to 54 units. If you have any questions I can try to awnser, we all learn from each other.

JD,

I use to have rental houses and in 2001 I started buying apartments and I will probably never go back to owning rental houses. Apartments, in my opinion, are a much better value.

1. More renters to collect revenue from. If one moves out, you still have the other renters to cover the bills.

2. Apartments are much cheaper to own in relation to housing units. If you buy a four plex for $200k, then each unit cost you $50k .... much less than an individual home.

3. The Cash flow with an apartment is typically MUCH better and profitable.

When I purchased my apartments I made a big jump and my first aquisition was a 24 unit complex, then an 18 unit complex 6 months later.

Sean Allen

Sean gave some great advice and this is what my clients have learned to realize.

A vacant house is 100% vacant house. A vacant apartment typically is not 100% vacant.

I see that you are new to Active Rain and I just wanted to welcome you. I hope that you enjoy it as much as I do and that you find it a great resource.

JD, I am a partner in an investment company that handles multi family projects for private partnerships.  I will tell you that the other posts are true, apartments can offer you an opportunity that house can not.  But...

They are also much more complicated.  You are entering the world of commercial real estate and you are absolutely correct about having a mentor.  There is much to know.  I would be happy to lend you advice.  My first advice is to read Steve Berges "The complete guide to buying and selling apartment buildings? and his one on real estate investment finance. (sorry can't remember the name)  They will come up together on Amazon.

Best of luck to you.  Steve Saunders   ssaunders@e2-property.com www.e2-property.com