Not 1,000. Not even 100. Just 30. Most people getting into real estate are told to start small. Buy a duplex. Maybe a fourplex if you're feeling bold. And while that's a step in the right direction, here's what no one talks about. The real shift happens when you hit 30 units. Let’s keep it simple. Say you raise rents by $200 over time. You’re not gouging tenants, just keeping up with the market over 5 to 7 years. On 30 units, that’s an extra $6,000 per month. Multiply that by 12 months and you’ve got $72,000 a year in additional income. Now apply a 7% cap rate. That one move just added over $1 million in value to your property. That’s how wealth is built in multifamily real estate. Quietly. Consistently. By owning the right number of doors and letting time do its thing. You don’t need to chase 1,000 units. But you do need to think beyond two or three. The goal is cash flow and equity. Ownership and leverage. So what’s keeping you from getting to 30 units? Drop your answer below.

Here are the details (and since this is a listed property, I've changed some of the details) 50 Units Houston TX Existing average rent: $700/mo Market rent: $800/mo Asking price: $3,900,000 Property is a "C" building in a "C" area of Houston The apartments need $5,000 in renovation per unit . . Step 1: Calculate the Proforma Net Operating Income . Market rent x No of Units x 12 mos $800/mo/u x 50 units x 12 mos = $480,000/yr x (1- operating expense ratio) = NOI . . Given the property is a "C" property, use 50% as the operating expense ratio . NOI = $480,000/yr x (1- 50%) = $240,000/yr . . Step 2: Calculate the Proforma Value of the Building . Based on market analysis, the cap rate in the area for similar properties is around 6.5% . Value = NOI/ cap rate Value = $240,000/ 6.5% = $3,692,307 . . Step 3: Decide If the Deal is Worth It . Based on the above, this apartment building WILL BE WORTH $3.7M at the most BUT the seller is asking for $3.9M - $200,000 more than what this apartment building is going to be worth after WE DO THE WORK. . We will have to spend $250,000 in renovation PLUS take the time to increase the rent, put in our management and stabilize its operations. . Based on this, this is a NO DEAL. . What do you guys think? . Also, at what price will this property makes sense to you?