What’s the risk with a 12 unit apartment compared with a 2-4 unit? I understand that a commercial mortgage is required for 12 unit.
What’s the particular risk in terms of liability, management etc? For a 2-4 unit, you can get a landlord policy. For commercial insurance policy, is there more or less liability? And any particular risk if you self manage the 12 unit?
I think we need to think through this before buying any 5-15 unit
It is legal for them not to have an on-site manager at your building. California Code of Regulations, Title 25, section 42, requires property owners of apartment buildings with 16 or more units to have on-site resident managers living on their properties. There is no such requirement for apartment buildings with less than 16 units.
Source: http://articles.latimes.com/2002/jun/02/realestate/re-aptlife2
Personally too much hassle as you need to be on call/service all the time.
More units more risk and reward. The greater the number of units the higher the return… at least it should be…