4plex and Bugs thank you for the great information. You guys have the experience I don’t and I apprecite the responses. I look at some of these multi-units in california and can not figure why they are even on the market. They make no finacial sense for the price they are asking with the rents they are collecting. Unless you buy the bldg for cash but even at that rate you are better off without the risk and leaving your money in a MMF. I have had a hard time understanding why you would buy the property unless you thought it would apprectiate better than 5% per year. Maybe some can explain that to me.
My thought on multi-units was cash flow + greater than what you could get in a MMF maybe 7-10% and not even count on appreciation just only go for the cash flow.
4plex could you go over some of the pitfalls in more detail with investing out of state?
