222: Rehabbing And Managing Smaller Apartments Can Be Hard To Pencil, Especially From A Distance

In multifamily properties, it can be a challenge to manage buildings with fewer than 50-100 units. Third party property management companies cost a lot of money and having an in-house employee live on-site can be too expensive without enough units to amortize their cost. Additionally, it’s difficult to manage these smaller apartment buildings from afar, especially if you’re adding value to them with rehabs. Samuel Sells, CEO of Wild Mountain Capital, has acquired over 20 buildings over the past few years. Now he’s selling them and redeploying the capital into bigger buildings. He’s also shrinking his geographic footprint down from six to two states because he’s vertically integrated and it’s become to difficult to efficiently manage these properties from too far away.