- This topic has 45 replies, 6 voices, and was last updated 15 years, 8 months ago by
NotCranky.
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January 15, 2009 at 8:46 AM #14839January 15, 2009 at 9:02 AM #329147
4plexowner
Participant4 units – owner occupy one of the units for best financing
2-4 units are a sweet spot for the small-time RE investor
get the leverage of multiple units with owner-occ financing
5th unit causes a jump into ‘commercial’ category where reqd downpayment jumps to 35% neighborhood and interest rate not as good as owner-occ – ie, stay with 4 units or less
just remember, there is no free lunch, owning RE is a pain in the ass regardless of the type and dealing with tenants is not much fun [I can’t stand being lied to and tenants seem to do that as a matter of habit when dealing with the landlord]
January 15, 2009 at 9:02 AM #329672Participant4 units – owner occupy one of the units for best financing
2-4 units are a sweet spot for the small-time RE investor
get the leverage of multiple units with owner-occ financing
5th unit causes a jump into ‘commercial’ category where reqd downpayment jumps to 35% neighborhood and interest rate not as good as owner-occ – ie, stay with 4 units or less
just remember, there is no free lunch, owning RE is a pain in the ass regardless of the type and dealing with tenants is not much fun [I can’t stand being lied to and tenants seem to do that as a matter of habit when dealing with the landlord]
January 15, 2009 at 9:02 AM #329587Participant4 units – owner occupy one of the units for best financing
2-4 units are a sweet spot for the small-time RE investor
get the leverage of multiple units with owner-occ financing
5th unit causes a jump into ‘commercial’ category where reqd downpayment jumps to 35% neighborhood and interest rate not as good as owner-occ – ie, stay with 4 units or less
just remember, there is no free lunch, owning RE is a pain in the ass regardless of the type and dealing with tenants is not much fun [I can’t stand being lied to and tenants seem to do that as a matter of habit when dealing with the landlord]
January 15, 2009 at 9:02 AM #329559Participant4 units – owner occupy one of the units for best financing
2-4 units are a sweet spot for the small-time RE investor
get the leverage of multiple units with owner-occ financing
5th unit causes a jump into ‘commercial’ category where reqd downpayment jumps to 35% neighborhood and interest rate not as good as owner-occ – ie, stay with 4 units or less
just remember, there is no free lunch, owning RE is a pain in the ass regardless of the type and dealing with tenants is not much fun [I can’t stand being lied to and tenants seem to do that as a matter of habit when dealing with the landlord]
January 15, 2009 at 9:02 AM #329488Participant4 units – owner occupy one of the units for best financing
2-4 units are a sweet spot for the small-time RE investor
get the leverage of multiple units with owner-occ financing
5th unit causes a jump into ‘commercial’ category where reqd downpayment jumps to 35% neighborhood and interest rate not as good as owner-occ – ie, stay with 4 units or less
just remember, there is no free lunch, owning RE is a pain in the ass regardless of the type and dealing with tenants is not much fun [I can’t stand being lied to and tenants seem to do that as a matter of habit when dealing with the landlord]
January 15, 2009 at 9:12 AM #329493NotCranky
ParticipantI think you have to search out your own resources, skill set and inclinations. This may include your ability to delegate the many aspects of maintenance and management or your willingness and ability to do it yourself.
If you are prone to condos and apartments investigate what it takes to operate and see if that works for you.
I like SFR’s duplex or triplex,or at least the idea of them, as opposed to condos, because as a contractor I can add on or otherwise improve the value or the asset and rent capability. They are also within my financial means (sometimes).
I also have no interest in being in a situation where I am almost forced take tenants at random, as with apartments. I don’t delegate well or want to be an apartment manager so that is another strike against larger muliti-family. If these things are o.k. with you, density might be an advantage. Maybe they are more rent-able, but I always aim to have the ability to rent under market and be selective about tenants.
Right now I just have my house and I am building a two bedroom rental. After that I will probably/hopefully buy detached houses.
I think you must find what suits you.
January 15, 2009 at 9:12 AM #329564ParticipantI think you have to search out your own resources, skill set and inclinations. This may include your ability to delegate the many aspects of maintenance and management or your willingness and ability to do it yourself.
If you are prone to condos and apartments investigate what it takes to operate and see if that works for you.
I like SFR’s duplex or triplex,or at least the idea of them, as opposed to condos, because as a contractor I can add on or otherwise improve the value or the asset and rent capability. They are also within my financial means (sometimes).
I also have no interest in being in a situation where I am almost forced take tenants at random, as with apartments. I don’t delegate well or want to be an apartment manager so that is another strike against larger muliti-family. If these things are o.k. with you, density might be an advantage. Maybe they are more rent-able, but I always aim to have the ability to rent under market and be selective about tenants.
Right now I just have my house and I am building a two bedroom rental. After that I will probably/hopefully buy detached houses.
I think you must find what suits you.
January 15, 2009 at 9:12 AM #329152ParticipantI think you have to search out your own resources, skill set and inclinations. This may include your ability to delegate the many aspects of maintenance and management or your willingness and ability to do it yourself.
If you are prone to condos and apartments investigate what it takes to operate and see if that works for you.
I like SFR’s duplex or triplex,or at least the idea of them, as opposed to condos, because as a contractor I can add on or otherwise improve the value or the asset and rent capability. They are also within my financial means (sometimes).
I also have no interest in being in a situation where I am almost forced take tenants at random, as with apartments. I don’t delegate well or want to be an apartment manager so that is another strike against larger muliti-family. If these things are o.k. with you, density might be an advantage. Maybe they are more rent-able, but I always aim to have the ability to rent under market and be selective about tenants.
Right now I just have my house and I am building a two bedroom rental. After that I will probably/hopefully buy detached houses.
I think you must find what suits you.
January 15, 2009 at 9:12 AM #329592ParticipantI think you have to search out your own resources, skill set and inclinations. This may include your ability to delegate the many aspects of maintenance and management or your willingness and ability to do it yourself.
If you are prone to condos and apartments investigate what it takes to operate and see if that works for you.
I like SFR’s duplex or triplex,or at least the idea of them, as opposed to condos, because as a contractor I can add on or otherwise improve the value or the asset and rent capability. They are also within my financial means (sometimes).
I also have no interest in being in a situation where I am almost forced take tenants at random, as with apartments. I don’t delegate well or want to be an apartment manager so that is another strike against larger muliti-family. If these things are o.k. with you, density might be an advantage. Maybe they are more rent-able, but I always aim to have the ability to rent under market and be selective about tenants.
Right now I just have my house and I am building a two bedroom rental. After that I will probably/hopefully buy detached houses.
I think you must find what suits you.
January 15, 2009 at 9:12 AM #329677ParticipantI think you have to search out your own resources, skill set and inclinations. This may include your ability to delegate the many aspects of maintenance and management or your willingness and ability to do it yourself.
If you are prone to condos and apartments investigate what it takes to operate and see if that works for you.
I like SFR’s duplex or triplex,or at least the idea of them, as opposed to condos, because as a contractor I can add on or otherwise improve the value or the asset and rent capability. They are also within my financial means (sometimes).
I also have no interest in being in a situation where I am almost forced take tenants at random, as with apartments. I don’t delegate well or want to be an apartment manager so that is another strike against larger muliti-family. If these things are o.k. with you, density might be an advantage. Maybe they are more rent-able, but I always aim to have the ability to rent under market and be selective about tenants.
Right now I just have my house and I am building a two bedroom rental. After that I will probably/hopefully buy detached houses.
I think you must find what suits you.
January 15, 2009 at 10:13 AM #32922034f3f3f
ParticipantThanks for the comments. I have had rental properties but none in the US. Firstly, I would want to buy with cash, unless the tax advantages of a mortgage are very clearly in my favor. I wouldn’t want to manage more than two properties (tenants) myself, and may well use an agent for the first year, or two till I learned the ropes. 2-4 units does appeal but my concern is with finding this kind of property in a neighborhood that isn’t going to cause me grief. Single family homes to my mind require more maintenance, unless they are very new of course, but I would imagine the better rental areas are in the more traditional, older neighborhoods closer to downtown, shopping, work etc. I have seem some very nice apartment-type buildings, which are never for sale, always lease only. I guess syndicates buy these and you have to get in at the ground level with other investors, before they are even built. Correct? Depending on their fixed costs, these seem to make the most sense to me. They are small, new, manageable, and closer to amenities. I think there will be a shift away from urbanization, and a focus on central town planning, and building upwards due to the cost of land, which to my mind means a bigger rental market. I see this more than anywhere in downtown LA, which currently seems on hold due the economic crisis.
January 15, 2009 at 10:13 AM #329561ParticipantThanks for the comments. I have had rental properties but none in the US. Firstly, I would want to buy with cash, unless the tax advantages of a mortgage are very clearly in my favor. I wouldn’t want to manage more than two properties (tenants) myself, and may well use an agent for the first year, or two till I learned the ropes. 2-4 units does appeal but my concern is with finding this kind of property in a neighborhood that isn’t going to cause me grief. Single family homes to my mind require more maintenance, unless they are very new of course, but I would imagine the better rental areas are in the more traditional, older neighborhoods closer to downtown, shopping, work etc. I have seem some very nice apartment-type buildings, which are never for sale, always lease only. I guess syndicates buy these and you have to get in at the ground level with other investors, before they are even built. Correct? Depending on their fixed costs, these seem to make the most sense to me. They are small, new, manageable, and closer to amenities. I think there will be a shift away from urbanization, and a focus on central town planning, and building upwards due to the cost of land, which to my mind means a bigger rental market. I see this more than anywhere in downtown LA, which currently seems on hold due the economic crisis.
January 15, 2009 at 10:13 AM #329745ParticipantThanks for the comments. I have had rental properties but none in the US. Firstly, I would want to buy with cash, unless the tax advantages of a mortgage are very clearly in my favor. I wouldn’t want to manage more than two properties (tenants) myself, and may well use an agent for the first year, or two till I learned the ropes. 2-4 units does appeal but my concern is with finding this kind of property in a neighborhood that isn’t going to cause me grief. Single family homes to my mind require more maintenance, unless they are very new of course, but I would imagine the better rental areas are in the more traditional, older neighborhoods closer to downtown, shopping, work etc. I have seem some very nice apartment-type buildings, which are never for sale, always lease only. I guess syndicates buy these and you have to get in at the ground level with other investors, before they are even built. Correct? Depending on their fixed costs, these seem to make the most sense to me. They are small, new, manageable, and closer to amenities. I think there will be a shift away from urbanization, and a focus on central town planning, and building upwards due to the cost of land, which to my mind means a bigger rental market. I see this more than anywhere in downtown LA, which currently seems on hold due the economic crisis.
January 15, 2009 at 10:13 AM #329634ParticipantThanks for the comments. I have had rental properties but none in the US. Firstly, I would want to buy with cash, unless the tax advantages of a mortgage are very clearly in my favor. I wouldn’t want to manage more than two properties (tenants) myself, and may well use an agent for the first year, or two till I learned the ropes. 2-4 units does appeal but my concern is with finding this kind of property in a neighborhood that isn’t going to cause me grief. Single family homes to my mind require more maintenance, unless they are very new of course, but I would imagine the better rental areas are in the more traditional, older neighborhoods closer to downtown, shopping, work etc. I have seem some very nice apartment-type buildings, which are never for sale, always lease only. I guess syndicates buy these and you have to get in at the ground level with other investors, before they are even built. Correct? Depending on their fixed costs, these seem to make the most sense to me. They are small, new, manageable, and closer to amenities. I think there will be a shift away from urbanization, and a focus on central town planning, and building upwards due to the cost of land, which to my mind means a bigger rental market. I see this more than anywhere in downtown LA, which currently seems on hold due the economic crisis.
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