Where Have You Found Apartments That Cash Flow?
Okay, come fall I will have sold a property. I am looking for multi-units that will cash flow to 1031 the profits into. In Southern California getting cash every month is not so easy without a large down payment. So, if I gave you the following parameters:
1. $75,000-$100,000 to use as 1031/down payment money.
2. Looking for at least four units, preferably more.
3. I don’t mind a fixer, or an out of state property.
4. I don’t mind selling it in a few years.
5. My FICO average is 760 and I am open minded to the various financing options.
......Where would you go? Phoenix, Las Vegas? Where have you found the best multi-unit cash flow properties in the current market?
As always, thanks in advance for the thoughtful responses you provide. Brian
check out Lincoln Nebraska. It's the state capitol and a university town of about 250,000. I just bought a nice 14 plex with lots of decking and parking for 17 cars for 475,000. $67,000 gross rents with cash flow of + $14,000 a year. A management co. runs it for me. Good Luck!
Wait a few months, there are some units in the San Fernando Valley which are the worst managed I have ever seen. They are terrible no repairs and no restyling. Just screwing around. Out of state owner who does not have a clue.
We are driving by on a weekly basis and am in contact with some of the tenants. We think it can be stolen with excellent structure on the paper coming back. We are searching for an equity repair loan. Needs a weekly rental rate. and an awful lot of TLC.
Game plan. To buy, big tenants meeting and then paint and fix and designate car repair area only. Bring the units under control and set up the four furnished areas for in and out transit relatives etc. Install of machines, Washers etc. www.etc.Turn it into a winner. Flowers, white fence etc. etc. Then either hold as a low end rental. For those in economic transit or sell it to one of the more established trusts for a really excellent markup. Depends what is really happening.
Market giving strange signals. Upper priced properties are taking longer to sell and no body seems to want to buy and fix up. Just a few pros. REO's are becoming more human and actualy willing to work with you to prevent a foreclosure. Amazing. Evidence of change. So wait awhile.
Lucius