Fourplex Investment

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I am a relatively rookie investor and have 80k to invest, possibly in a four plex. I've been hearing that Utah has great CAP rates and good appreciation. I live in California and everything is overvalued. It's nearly impossible to get great deals anymore. What other states are good to invest in four plexes where I could have a decent positive cashflow?

[Jason Barnett]

For cash flow, look to the midwest. I live in the Dayton OH area and we have CA investors here for that exact reason. Same can be said for Indianapolis, Cincinnati, probably others. Appreciation is not spectacular (right now), but it is easy to buy a fourplex that will have positive cash flow with only 75% occupancy.

[Brent Davidson]

I've been doing some homework, and I agree with juzamjedi. The midwest has some really good deals. I've also seen affordable multiplexes updtate New York, and around Michigan.

[Derek Guyer]

Speaking for Indy and in agreement with the other two, the midwest is incredible right now.

You could get quite a bit more here in Indy for $80k-$100k than you probably could anywhere on either coast. The cash flow possibilities are quite amazing and endless.

After debt service, property management, property repair fees and vacancy loss, you should be able to cash flow at least $400/month.

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I've been told investing out of state is insane because using a property manager eats up all your proficts, particularly, when you have to fill a vacancy. Any truth to this?

[Derek Guyer]

Cash flow real estate is done for the purpose of 1. Financial freedom and 2. Freedom of time. If you are budgeting in the fees of a property manager from the beginning, then you are prepared for the costs and able to experience the freedom.

Our investors don't want the late night phone calls and the hassles of tenants and so we have worked hard to develop a relationship with a property manager who is solid and dependable. This allows for both the freedom financially and in their time.

Even if this cuts your cash flow, you have the time and freedom to work on the next property and the next, etc.

Let your money work for you. That's real investing. Dealing with tenants seems more like insanity.

Email us if you would like. We'd be more than happy to help in any way.

[Chris Crane]

I concur,

I use management on my properties and not only do they provide peace of mind, but they save me tons because of the staff that they have that woks buy the hour as opposed to me bidding everything by the job.

Go with a larger outfit, interview several and spend the time to get to know your manager... not the owner of the company but the actual manager. I am kind but vocal and my managers stay on top of my properties because they appreciate the business and the attitude... a lot of landlords are not kind about managing their property managers as if they earned the right to be jerks.

[Account Closed]

Who knows good management Companies in Cincinnati ?

[Kyle Thacker]

Be careful investing out of state, know the market get a good property manager (easier said than done) and I personally would go look at properties before I bought one. You can get a better feel for the area than with just pictures.

Good luck