What causes the most headaches in Rental Apartments
How would you know that people are buying drugs in the alley? I don't think he has any experience with real-estate.
Hey do you have an one on one coaching program
Isn't this also a list of opportunities? Just because they are difficulties with these types of properties and you are good at dealing with them you can buy them for less and get a better deal overall.
the last comment….dont buy to large…2-3 bedrooms…dont buy small..1 bedroom……so what are you suppose to buy?
Good information for a well-informed purchase decision!
You just excluded 80% of the property in all of Canada with one of your rules or another. Too picky – if being a landlord was as easy as following a checklist to easy profits then everyone would be a landlord. The truth is that there is risk and liabilities that are unavoidable which is why being a landlord isn't for everyone and some people want to rent. You can't eliminate risk or liabilities – just tailor them to your personal preferences as a landlord. (I'd rather deal with painting and landscaping repairs then roofing, electrical or plumbing repairs – so I can bias accordingly).
My friend and I almost EXCLUSIVELY rent out cheap houses. They make us great money AFTER the rent is paid each month, PER HOUSE! Booyah folks! I wish I could tell you how much! We buy in the 'wrong crowd" neighborhood and we heavily background our prospective tenants. We rent out Sec. 8 and regular renters. Our renters typically stay at least one year and often for 2-3 years before they move out. We do it right, bro. No need for 4-plexs, but there is nothing really inherently wrong with them, either. My buddy has a 4 or 6 plex, I can't remember.
I've done very well with single family residential homes. I did at one time have an interest in multi-family homes but upon further investigation I found that the ROI and cap rates were significantly lower then what I was accustomed to receiving. This was due to the fact that "income producing" real estate has a much higher market price because it is "income producing"(at least in my city). So I make much better returns with single family homes.The major disadvantage with single family homes(especially when you own a large number of them) is the management. (I have found through experience, property management company's are not near as efficient as I am, which costs me more money along with their management fees) The multi-family home would be more efficient from a managerial perspective but at what cost? I like my high returns.
17 years of doing the business and I agree with every recommendation except for main street units & avoid large units. The bigger the unit the more you can rent the prop How bout your recommendations for finding rental properties for sale & available on-line. Thanks for posting.
Alan . maybe it's different in your neighborhood , but in mine , the 1 bedroom garden apartments ( i.e. with their own outside door ) rent very well to commited singles .I've had 2 single guys who've been with me 10 years . As far as risk finding good tenants? : 1 prefer the males because they are more likely to be tidy & fix things themselves or learn to live with "defects". The girls more likely to be untidy & always wanting the smallest items fixed. Conversely , the 2 bedroom apartments are mostly rented by couples , who usually only last 1-3 years . There are so many more reasons why a couple will move – one of them loses their job or gets transferred , they split up or they save a deposit to get their own place .
In LA it is over one unit get you in the normal 3 year inspections. Properties over 2 stories then get extra inspections every 6 months for earthquake reinforcing, plumbing, elevators working, water sprinkler systems and automatic fire door inspections. Complaints by tenants also get you on a yearly sanitation inspection as well.
For those following you I would caution your selection of the 4-plex as the entry point for an investing career if the pptential investor is looking at New Jersey. In NJ the State of NJ uses the 4-plex as the jumping off point to for their oversight. Had I purchased a tri-plex I would have been invisible to the State of New Jersey, the county, and the city my property is in. Instead I am treated as if I have 60, 100, 200 unit complexes.
City Inspectors want to keep their jobs. In order to ensure that they are doing a lot of work, they want to go out and take pictures of properties and cite the owners. What worse looking property will there be than a property that has been vacant for 6 months and has dried grass, and trash all over the front yard. The City will not fight the Banks because they know that the Banks have lawyers so they come out and cite the new owner. They are just waiting for you to buy it to get you.
what do you mean in a foreclosure they came out and fight a owner?
Why would the city come after you re. foreclosures?
Yes, California seems to be tougher than most states and rent control areas are even worse. I recommended to a friend that he live in one of his commerical properties because he is struggling to pay bills.
Sounds like many of your suggestions are for California? I have a few of these with some of my homes. I actually live in a garage apartment (one of your no-nos, but I, the owner live there) that is above 4 garages, and each garage serves 1 unit of two duplexes in front of the garage. I love this situation, I live on the property so got some mortgage benefits & I can walk to either duplex easily & work (I do most maintenance).
The inventory will not get better because contractors were unable to sell because banks were not loaning. This forced a lot of contractors to go bankrupt. Starting up after a bankruptcy is hard because no one will give you financing. In 2006 2.2 million new homes were sold. In 2011 304,000, in 2012 367,000 and in 2013 it is on track to sell 419,000 new homes. I don't see a lot of new inventory anytime soon. I think that prices will continue up at the current rate till 2015 then accelerate up.
Singles, Bachelors and Studios have high vacancies that eat away at your cash flow and take time to coordinate repairs, painting, cleaning and renting. 2, 3 and 4 bedroom units have high maintenance because they have lots of amenties like builtins, central air conditioners, pools, and barbecues. One bedroom one bath units have low vacancies and low maintenance. One man in Newport Beach bought 240 one bedroom one bath units. I own all one bedroom one bath units.