Best investment type property?

[34f3f3f]

Thanks 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.

[EconProf]

A few comments to add to the helpful ones already showing up here.
Be prepared to become a hands-on fixit guy, or gal. Lots of little maintenance items can only be learned by doing it yourself, perhaps initially with help from an experienced older friend or relative. Don’t expect to rely on contractors except for tough things like bigger plumbing or electrical problems. When you have a vacancy, countless little items must be attended to, and you will need to get to know your property thoroughly in order to address them yourself. Tenants rightly expect near-perfection with everything working, and anything broken or unsafe to be fixed immediately. Vacancies can eat you alive, so minimize turnover. When you have a vacancy put your life on hold and get it rent-ready and show it to prosepcts ASAP.
All this suggests newer SFRs would be the place to invest. Very few duplexes, triplexes, and fourplexes have been built in recent decades, so where they exist, they have the maintenance problems that come with age. Plus, they tend to be in lesser neighborhoods.

[EconProf]

A few comments to add to the helpful ones already showing up here.
Be prepared to become a hands-on fixit guy, or gal. Lots of little maintenance items can only be learned by doing it yourself, perhaps initially with help from an experienced older friend or relative. Don’t expect to rely on contractors except for tough things like bigger plumbing or electrical problems. When you have a vacancy, countless little items must be attended to, and you will need to get to know your property thoroughly in order to address them yourself. Tenants rightly expect near-perfection with everything working, and anything broken or unsafe to be fixed immediately. Vacancies can eat you alive, so minimize turnover. When you have a vacancy put your life on hold and get it rent-ready and show it to prosepcts ASAP.
All this suggests newer SFRs would be the place to invest. Very few duplexes, triplexes, and fourplexes have been built in recent decades, so where they exist, they have the maintenance problems that come with age. Plus, they tend to be in lesser neighborhoods.

[EconProf]

A few comments to add to the helpful ones already showing up here.
Be prepared to become a hands-on fixit guy, or gal. Lots of little maintenance items can only be learned by doing it yourself, perhaps initially with help from an experienced older friend or relative. Don’t expect to rely on contractors except for tough things like bigger plumbing or electrical problems. When you have a vacancy, countless little items must be attended to, and you will need to get to know your property thoroughly in order to address them yourself. Tenants rightly expect near-perfection with everything working, and anything broken or unsafe to be fixed immediately. Vacancies can eat you alive, so minimize turnover. When you have a vacancy put your life on hold and get it rent-ready and show it to prosepcts ASAP.
All this suggests newer SFRs would be the place to invest. Very few duplexes, triplexes, and fourplexes have been built in recent decades, so where they exist, they have the maintenance problems that come with age. Plus, they tend to be in lesser neighborhoods.

[EconProf]

A few comments to add to the helpful ones already showing up here.
Be prepared to become a hands-on fixit guy, or gal. Lots of little maintenance items can only be learned by doing it yourself, perhaps initially with help from an experienced older friend or relative. Don’t expect to rely on contractors except for tough things like bigger plumbing or electrical problems. When you have a vacancy, countless little items must be attended to, and you will need to get to know your property thoroughly in order to address them yourself. Tenants rightly expect near-perfection with everything working, and anything broken or unsafe to be fixed immediately. Vacancies can eat you alive, so minimize turnover. When you have a vacancy put your life on hold and get it rent-ready and show it to prosepcts ASAP.
All this suggests newer SFRs would be the place to invest. Very few duplexes, triplexes, and fourplexes have been built in recent decades, so where they exist, they have the maintenance problems that come with age. Plus, they tend to be in lesser neighborhoods.

[EconProf]

A few comments to add to the helpful ones already showing up here.
Be prepared to become a hands-on fixit guy, or gal. Lots of little maintenance items can only be learned by doing it yourself, perhaps initially with help from an experienced older friend or relative. Don’t expect to rely on contractors except for tough things like bigger plumbing or electrical problems. When you have a vacancy, countless little items must be attended to, and you will need to get to know your property thoroughly in order to address them yourself. Tenants rightly expect near-perfection with everything working, and anything broken or unsafe to be fixed immediately. Vacancies can eat you alive, so minimize turnover. When you have a vacancy put your life on hold and get it rent-ready and show it to prosepcts ASAP.
All this suggests newer SFRs would be the place to invest. Very few duplexes, triplexes, and fourplexes have been built in recent decades, so where they exist, they have the maintenance problems that come with age. Plus, they tend to be in lesser neighborhoods.

[scaredyclassic]

I’m a tenant. I never whine. I barely call the landlord. Things have been broken a while, I don’t fret, sometimes fix it myself. Reason: I got a screaming deal on my place. I think if you get the right tenant at the right price you can develop a good working relationship. I wouldn’t want to get in that line of work though, i think it would be hard to find a reasonable tenant who would always pay on time. On the other hand, i’m starting to see listings so super cheap, the risk of non payment even for 6 months doesn’t seem so horrendous…

[scaredyclassic]

I’m a tenant. I never whine. I barely call the landlord. Things have been broken a while, I don’t fret, sometimes fix it myself. Reason: I got a screaming deal on my place. I think if you get the right tenant at the right price you can develop a good working relationship. I wouldn’t want to get in that line of work though, i think it would be hard to find a reasonable tenant who would always pay on time. On the other hand, i’m starting to see listings so super cheap, the risk of non payment even for 6 months doesn’t seem so horrendous…

[scaredyclassic]

I’m a tenant. I never whine. I barely call the landlord. Things have been broken a while, I don’t fret, sometimes fix it myself. Reason: I got a screaming deal on my place. I think if you get the right tenant at the right price you can develop a good working relationship. I wouldn’t want to get in that line of work though, i think it would be hard to find a reasonable tenant who would always pay on time. On the other hand, i’m starting to see listings so super cheap, the risk of non payment even for 6 months doesn’t seem so horrendous…

[scaredyclassic]

I’m a tenant. I never whine. I barely call the landlord. Things have been broken a while, I don’t fret, sometimes fix it myself. Reason: I got a screaming deal on my place. I think if you get the right tenant at the right price you can develop a good working relationship. I wouldn’t want to get in that line of work though, i think it would be hard to find a reasonable tenant who would always pay on time. On the other hand, i’m starting to see listings so super cheap, the risk of non payment even for 6 months doesn’t seem so horrendous…

[scaredyclassic]

I’m a tenant. I never whine. I barely call the landlord. Things have been broken a while, I don’t fret, sometimes fix it myself. Reason: I got a screaming deal on my place. I think if you get the right tenant at the right price you can develop a good working relationship. I wouldn’t want to get in that line of work though, i think it would be hard to find a reasonable tenant who would always pay on time. On the other hand, i’m starting to see listings so super cheap, the risk of non payment even for 6 months doesn’t seem so horrendous…

[NotCranky]

It probably is obvious or perhaps seems silly at this time, but remember to include appreciation potential in your parameters. As long as you are going to be a landlord you might as well make an educated guess as to the upside of what you are buying. This could include finding the stomach for an area that might include some grief. It might mean staying in nicer areas but researching planning and zoning agendas or just studying trends as you have mentioned.

I knwo you are thinking Los Angeles but I think San Diego also has a lot of potential to develop some of the surface streets for more High rise rental/mixed use capacity. The most obvious seems to be El Cajon Blvd. Clairemont Mesa BLVD seems good too.Maybe Genesee. These are just examples. I could see these becoming something like Wilshire Blvd. in Los Angeles. Thinking about the surrounding areas for rentals may have some increased benefit in future rents or appreciation. This may never happen or take a very long time. It seems like potentially worthy food for thought.

As far as buying a bigger building. They are not all handled by syndicates. You can buy whatever you have the dough for, although you probably would incorporate. I can’t really address your possibilities there for lack of practical experience. The SDCIA blog is a good source of info on this topic.

[NotCranky]

It probably is obvious or perhaps seems silly at this time, but remember to include appreciation potential in your parameters. As long as you are going to be a landlord you might as well make an educated guess as to the upside of what you are buying. This could include finding the stomach for an area that might include some grief. It might mean staying in nicer areas but researching planning and zoning agendas or just studying trends as you have mentioned.

I knwo you are thinking Los Angeles but I think San Diego also has a lot of potential to develop some of the surface streets for more High rise rental/mixed use capacity. The most obvious seems to be El Cajon Blvd. Clairemont Mesa BLVD seems good too.Maybe Genesee. These are just examples. I could see these becoming something like Wilshire Blvd. in Los Angeles. Thinking about the surrounding areas for rentals may have some increased benefit in future rents or appreciation. This may never happen or take a very long time. It seems like potentially worthy food for thought.

As far as buying a bigger building. They are not all handled by syndicates. You can buy whatever you have the dough for, although you probably would incorporate. I can’t really address your possibilities there for lack of practical experience. The SDCIA blog is a good source of info on this topic.

[NotCranky]

It probably is obvious or perhaps seems silly at this time, but remember to include appreciation potential in your parameters. As long as you are going to be a landlord you might as well make an educated guess as to the upside of what you are buying. This could include finding the stomach for an area that might include some grief. It might mean staying in nicer areas but researching planning and zoning agendas or just studying trends as you have mentioned.

I knwo you are thinking Los Angeles but I think San Diego also has a lot of potential to develop some of the surface streets for more High rise rental/mixed use capacity. The most obvious seems to be El Cajon Blvd. Clairemont Mesa BLVD seems good too.Maybe Genesee. These are just examples. I could see these becoming something like Wilshire Blvd. in Los Angeles. Thinking about the surrounding areas for rentals may have some increased benefit in future rents or appreciation. This may never happen or take a very long time. It seems like potentially worthy food for thought.

As far as buying a bigger building. They are not all handled by syndicates. You can buy whatever you have the dough for, although you probably would incorporate. I can’t really address your possibilities there for lack of practical experience. The SDCIA blog is a good source of info on this topic.

[NotCranky]

It probably is obvious or perhaps seems silly at this time, but remember to include appreciation potential in your parameters. As long as you are going to be a landlord you might as well make an educated guess as to the upside of what you are buying. This could include finding the stomach for an area that might include some grief. It might mean staying in nicer areas but researching planning and zoning agendas or just studying trends as you have mentioned.

I knwo you are thinking Los Angeles but I think San Diego also has a lot of potential to develop some of the surface streets for more High rise rental/mixed use capacity. The most obvious seems to be El Cajon Blvd. Clairemont Mesa BLVD seems good too.Maybe Genesee. These are just examples. I could see these becoming something like Wilshire Blvd. in Los Angeles. Thinking about the surrounding areas for rentals may have some increased benefit in future rents or appreciation. This may never happen or take a very long time. It seems like potentially worthy food for thought.

As far as buying a bigger building. They are not all handled by syndicates. You can buy whatever you have the dough for, although you probably would incorporate. I can’t really address your possibilities there for lack of practical experience. The SDCIA blog is a good source of info on this topic.

[Author]

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