Posted by evo on August 08, 2002 at 03:58:38:
I understand what you are saying. My question still remains unanswered. Let me know. Thanks.
Stupid Question - Posted by evo
Posted by evo on August 07, 2002 at 05:08:40:
Hi,
I am new to R.E.I. So here is a stupid question. I was wondering since most or all multi units properties have positive cash flow. Why don’t investor just purchase as much multi units properties as possible? In the end, doesn’t all the small cash flows add up to be a big one. The reason I ask this is because I see so many multi units for sale and not all of them are being bought up. Please clarify this for me. Thanks.
Re: Stupid Question - Posted by evo
Posted by evo on August 08, 2002 at 16:08:35:
Thank everyone. That really clears it up.
Re: Stupid Question - Posted by GregVa
Posted by GregVa on August 08, 2002 at 06:48:43:
Not all multi units have a positive cash flow. Getting the property at a purchase price and getting the deal structured so that you have a positive cashflow is the key to making it a good deal. Also what looks like a good deal to one investor may look like a bad one to another. How much cash down? Cash on cash return and your abitlity to come up with the cash to make the deal happen all effect the final outcome. Ray Alcorn has lots of post here that refer to these situations you may want to read them. Beside if what you said were true, most or all have a positive cashflow, I would own all of the multi-units myself.
Good luck in your investing.
Greg
Re: Stupid Question - Posted by Gerald Bowman
Posted by Gerald Bowman on August 07, 2002 at 14:22:05:
Well, first of all with multi units ( I assume you are referring to 5 or more units) come multi regulation!!! Rent control, rent stabilization, and a host of other issues. Secondly, if your just starting out, coming up with the 25 - 30 % necessary to purchase multi-family properties pose a bigger problem. I am starting small and working my way up. I prefer to get my feet wet with 3 and 4 family house before I jump in the 5 unit or more pond.
Re: Stupid Question - Posted by jh
Posted by jh on August 08, 2002 at 11:57:39:
even dumber question: doesn’t rent ontrol / stabilization, etc. depend upon the area, ie., I would presume that NOT ALL properties with more than 4 units have this?