Posted by james(CA) on March 29, 2011 at 01:30:18:
As a start, don’t go into rough areas, people are not as nice and dependable as good tenants. I would start buying good single family homes in nice but not so expensive areas and rent to good working folks. Schools should be good too, and close to employments, shoppings, ,freeways. good luck…I have been looking to do this in SO CA in Inland Empire areas. Then you can look into buying nice apartments. Tough areas might give you stress if you don’t have experience dealing with them…My parttime business deal with a lot of low and unemployed people and boy always something new happen all the time…basically you can not trust or count on these people…they don’t care about credit…just want to screw you…some of them I meant.
Buying Apartment complex/building - Posted by May Lee
Posted by May Lee on December 31, 2010 at 22:53:22:
Hi Mr. Ray,
We are living in East Bay area (close to SF, CA). My husband and I are thinking
use our $200K-$300K saving to invest/buy apartment complex / building, so
that we can have stable rental income each month, and we are planning to
hold for a long period. Can you give some advise how to start out?
Appreciated
May
PS: My husband is working for local utility company, pretty much a helpful
handyman, and I have a BA in Business Administration, know accouting, but I
am not working now due to rasing a baby.
Re: Buying Apartment complex/building - Posted by Chicago guy
Posted by Chicago guy on January 18, 2011 at 14:25:52:
Hi May Lee,
I used to live in the Bay Area. Yes east Bay is tough (BTW I lived in Cupertino). One of my friends owns several properties in SF and around the Bay area. He once told me to be careful about buying in the rough neighborhood. The number may look good IF you can actually collect! He lost a bit of money buying in Oakland area. Since then he only buys in the good area. Good luck.
How about a 4-plex and maybe a duplex? Would a deal make sense? Do the math. Insurance, property taxes, vacancy, property management fee, mortgage interest plus repayment rate of say 2%.
The beauty is the after tax return - if you find something that works out for you.
Re: Buying Apartment complex/building - Posted by May Lee
Posted by May Lee on January 05, 2011 at 13:27:43:
Thank you so much for all the posting. I appreciate all the information.
Expecially the information from Mr. Paul Timmies is very helpful, thank
you again.
I did look up the loopnet website. I have read a couple about
Commercial Real Estate Investing. Among the SF Bay Area, CA. There
are some place with Cap rate 4% - 6%, this is usually in the good area,
some area with Cap rate 7% - 9%…
For a novice investor, I think with the $200K downpayment, it can be
put us to buy an apartment complex around 1 M, and the 8% Cap rate.
Any suggestion, appreciated!
Re: Buying Apartment complex/building - Posted by May Lee
Posted by May Lee on January 08, 2011 at 23:08:57:
Thank you so much for your advise. Yes, we are doing all the number.
It doesn’t matter for us if it is a complex, duplex, 4-plex or triplex…
the important is the return/positive cash flow each month. The
problem is: Of which the property can provide good numbers is located
in the “trouble area” - rundown area, my husband doesn’t feel comfort
for a little family like us to own and run the building.
Another issue is the unemployment rate is so high now, poeple whom
lost their jobs can file for bankruptcy and the landlord cannot move
them out even the tenants don’t pay the rents for months.
Any good advises?
Appreciated!
