Investment
I am new in investing 4 plexes. Is it better to invest out of California? The plexes in California is out of my price range. Either you break even, small return or a negative return. I am thinking investing in AZ, CO, or Texas.
AZ still have 4 plexes in OK area between 180 - 250K.
Can I trust the real estate management company?
thxs[ Edited by alfie1 on Date 08/21/2004 ]
I live in northern AZ. I'm not sure where your loking but 180-200k seems very low for 4plexes I just closed on a duplex for 225 in Cottonwood
alfie,
I too always seem to think the grass is greener somewhere else (although since I live in minnesota, Florida rentals in January are especially appealing)
When property values are lower in a particular area, just expect the rent to be lower. It really does seem to even out.
Since finding 4plexes in foreclosure is nearly impossible, I'd suggest you get started on single family's or possibly duplexes that offer some sort of instant equity. After accululating a few of these, perhaps you can leverage those investments to make the 4plexes you are interested in more viable.
Thks for your response, I just do not know where to invest. Cal is so high, and either break even depending the loan you are getting or negative cash flow. 5 units or more wanted 20-30% down, it is commerial property. In LA, the 4 units are about 500-1,000,000 depending upon their location. So AZ is probably the only candidate for me
As to the property management question.
When shopping for a manager, contact the local investment club in the target areas and see who they recommend or who is a member and is a licensed property manager.
Contact managers and ask for reference. Tell them you want folks that you can speak with who are out of state or at some distance.
Expect that it will likely cost more in running costs as things you might have handled locally will not get handled by a person who needs to make a profit. Small maintenance things that were only a trip to Home Depot are not a call out task for a contractor (who shops at Home Depot).
Otherwise investing at distance can work. I would suggest you factor in some travel when you are getting to know an area.
John
[addsig]
Everything is relative, if monthly income is over $2500-2600 then 225 for a duplex is a decent deal. My partner and I just bought a 6 plex for $202k with monthly income of $3300
Ray Higdon
That is a great deal you got there Ray_Higdon, if I may ask how did you come across a deal like this on your 6-flat with that kind of income??
That particular one was a pocket listing from a realtor, he was originally asking 250k.
We got a similar one, 6 units, income of $3k a month for 198k from postcards
Im happy for you Ray, those are some great deals you got. I have a realtor looking for me also on residential 4-Units and all the ones we came across the owner will not go down any more than 15k tops and that is not enough to make a good cashflow per month. On your postcards, did you just send to all landlords and the motivated ones just happen to call? Im just interested in your methods so I can get a better understanding of what is out there and how to go about getting these deals. Thanks for your posts on this.
Sean
How about Mesa AZ. I found one 4 remodelled units for 255K. Seller claimed rents are in the $600. I offered 245K and demanded all lease contract in my offer, and he countered me to credit $2,400 to cover the lease for the whole month. Seemed to be the unit is not fully occupied.
Is this a good counter? The comp are about between 249-265K. My RE agent sent me 4 comp in the area.
Need answer fast. Thanks
Quote:
On 2004-08-21 09:12, mcq wrote:
I live in northern AZ. I'm not sure where your loking but 180-200k seems very low for 4plexes I just closed on a duplex for 225 in Cottonwood
Alfie, I would not buy something for $245k that brings in $2400 a month but it may work with your numbers depending on your financing and if vacancies and repairs are low.
Practive, I send postcards to places that fit my criteria, non-primary residence places and especially in low-moderate income areas.