Getting started with Muli-Family investments

[jamsvet]

I was into investment property until about 4 years ago, now all I’ve got are some small commercial props and a little strip mall. I just don’t think that anything now makes economic sense. All my props I’ve had for a long time. There is no way that you can buy something today especially multifamily and make money.

Yeah, you’ll hear from “experts” that say look at he numbers, if you buy for a GRM of 10 with a 5% vacancy factor, etc, etc, etc. Real world, something always comes along to screw up those numbers. Especially if you need a decent cash flow. It only takes a unit to be vacant for one month to really screw things up.

Hate to be a downer, but until investment properties get back to something approaching realworld values, my money is in CDs.

[Ren]

[quote=jamsvet]I just don’t think that anything now makes economic sense.[/quote]

It depends on the area. Check out Riverside county. Using the 50% rule, there are a lot of profitable properties out there, in decent neighborhoods.

The biggest mistake I’ve seen residential landlords make (over and over and over again) is to get greedy with rent. They charge over market because they’re convinced they have the nicest house on the block, but the only people willing to pay that are the ones with questionable credit. Three months later, they wonder why they always end up with an eviction and damage.

If you pay the right amount for a property, you can charge below market, get well-qualified tenants, and still have very positive cash flow.

[Ren]

[quote=jamsvet]I just don’t think that anything now makes economic sense.[/quote]

It depends on the area. Check out Riverside county. Using the 50% rule, there are a lot of profitable properties out there, in decent neighborhoods.

The biggest mistake I’ve seen residential landlords make (over and over and over again) is to get greedy with rent. They charge over market because they’re convinced they have the nicest house on the block, but the only people willing to pay that are the ones with questionable credit. Three months later, they wonder why they always end up with an eviction and damage.

If you pay the right amount for a property, you can charge below market, get well-qualified tenants, and still have very positive cash flow.

[Ren]

[quote=jamsvet]I just don’t think that anything now makes economic sense.[/quote]

It depends on the area. Check out Riverside county. Using the 50% rule, there are a lot of profitable properties out there, in decent neighborhoods.

The biggest mistake I’ve seen residential landlords make (over and over and over again) is to get greedy with rent. They charge over market because they’re convinced they have the nicest house on the block, but the only people willing to pay that are the ones with questionable credit. Three months later, they wonder why they always end up with an eviction and damage.

If you pay the right amount for a property, you can charge below market, get well-qualified tenants, and still have very positive cash flow.

[Ren]

[quote=jamsvet]I just don’t think that anything now makes economic sense.[/quote]

It depends on the area. Check out Riverside county. Using the 50% rule, there are a lot of profitable properties out there, in decent neighborhoods.

The biggest mistake I’ve seen residential landlords make (over and over and over again) is to get greedy with rent. They charge over market because they’re convinced they have the nicest house on the block, but the only people willing to pay that are the ones with questionable credit. Three months later, they wonder why they always end up with an eviction and damage.

If you pay the right amount for a property, you can charge below market, get well-qualified tenants, and still have very positive cash flow.

[Ren]

[quote=jamsvet]I just don’t think that anything now makes economic sense.[/quote]

It depends on the area. Check out Riverside county. Using the 50% rule, there are a lot of profitable properties out there, in decent neighborhoods.

The biggest mistake I’ve seen residential landlords make (over and over and over again) is to get greedy with rent. They charge over market because they’re convinced they have the nicest house on the block, but the only people willing to pay that are the ones with questionable credit. Three months later, they wonder why they always end up with an eviction and damage.

If you pay the right amount for a property, you can charge below market, get well-qualified tenants, and still have very positive cash flow.

[jamsvet]

I think the number one rule of investment property is don’t buy something that you don’t drive past on your way to work. If you are going to purchase investment property, you have to visit it frequently.

I guess I’m showing my inexperience, what is the 50% rule?

[jamsvet]

I think the number one rule of investment property is don’t buy something that you don’t drive past on your way to work. If you are going to purchase investment property, you have to visit it frequently.

I guess I’m showing my inexperience, what is the 50% rule?

[jamsvet]

I think the number one rule of investment property is don’t buy something that you don’t drive past on your way to work. If you are going to purchase investment property, you have to visit it frequently.

I guess I’m showing my inexperience, what is the 50% rule?

[jamsvet]

I think the number one rule of investment property is don’t buy something that you don’t drive past on your way to work. If you are going to purchase investment property, you have to visit it frequently.

I guess I’m showing my inexperience, what is the 50% rule?

[jamsvet]

I think the number one rule of investment property is don’t buy something that you don’t drive past on your way to work. If you are going to purchase investment property, you have to visit it frequently.

I guess I’m showing my inexperience, what is the 50% rule?

[Ren]

It’s not inexperience, I don’t think many people go by it. It’s just this – as a general rule, long-term maintenance costs (including vacancies, property management, and major expenses like flooring and roof) run about 40-50% of rental income, not counting the mortgage. If you manage your own property, it’s closer to 40%.

[Ren]

It’s not inexperience, I don’t think many people go by it. It’s just this – as a general rule, long-term maintenance costs (including vacancies, property management, and major expenses like flooring and roof) run about 40-50% of rental income, not counting the mortgage. If you manage your own property, it’s closer to 40%.

[Ren]

It’s not inexperience, I don’t think many people go by it. It’s just this – as a general rule, long-term maintenance costs (including vacancies, property management, and major expenses like flooring and roof) run about 40-50% of rental income, not counting the mortgage. If you manage your own property, it’s closer to 40%.

[Ren]

It’s not inexperience, I don’t think many people go by it. It’s just this – as a general rule, long-term maintenance costs (including vacancies, property management, and major expenses like flooring and roof) run about 40-50% of rental income, not counting the mortgage. If you manage your own property, it’s closer to 40%.

[Author]

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