SFH, 2-4 units, or 5+ Multifamily - WHY do you choose one?

Multi-Family and Apartment Investing
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SFH, 2-4 units, or 5+ Multifamily - WHY do you choose one?

J. MartinPro Member
Rental Property Investor · Oakland, CA · Member since 2011 · 3k+ posts · 2k+ votes

Me: 2-4 units (including multiple houses on 1 lot)
Location: SF Bay Area; Richmond, Oakland

Why?
1) 30yr fixed rate financing. I plan on owning the "fix and hold" properties I buy for AT LEAST a decade, and as of now, plan on retiring on them. Long-term fixed rate financing at this point in the interest rate cycle (below 5%) lets me take rent increases over the years to my bottom line, rather than sharing those increased rents with lenders over the longer-term, in the form of higher rates, when they go up

2) More concentrated than SFH, so I don't have to end up with XX properties all over the place. I'll end up with 1/2 to 1/4 of the total addresses by doing 2-4 instead of just SFH. Because I'm holding for the long term, I'm not very concerned about any lesser marketability, or specifically about any extra appreciation that comes from SFH buyer's desire to have that special home. The property should appreciate through increased rents in places with no buildable land, large differential from high and increasing housing costs nearby, close to employment centers with reasonable commute distances, and close to public transportation and freeways. MF would be even more concentrated, but the 30yr fixed rate is more important to me.

3) Less $/ft than SFH. (And more than MF). The cash flow (CF) is generally better on 2-4 units than SFH. The initial CF is better on MF than 2-4. BUT, that is just for the initial period, typically 5 years (if it's 10 years fixed, you're already looking at close to the 30yr fixed rate on 2-4 units..)

Drawbacks: Still have more addresses than MF, higher $/ft than MF, higher INITIAL rate MF, limited maximum number of 30yr fixed conforming loans you can get, higher expenses than SFH (utilities, etc), lower $/ft in rents in 2-4 compared to SFH..

This discussion is for @Chad Standish so we don't clog up the meetup posting too much. @Account Closed has SFH and condo (and looking at MF). I have 2 and 4 unit properties. Ironically, my 2 unit is 2 SFH on one lot (you can't tell. fence in between. lot just never split). I like these kinds of properties, because detached housing with private yards get a big premium here. So you get the SFH $/ft rents, with closer to the 2-4 unit $/ft price.

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Account Closed
Investor · San Jose, CA · Member since 2012 · 2k+ posts · 3k+ votes
12y

J,

There's no right way or wrong way. It depends on where we are in the cycle and personal preference. If I have a choice, I would only own SFHs, maybe townhomes and even condos... gasp....I no longer hate HOA with a vengeance like I used to. I don't really care for 2-4 units because of their location. I don't care for MF that are located immediately adjacent to other MF.

When condos were selling for $150k, duplexes were selling for $350k to $400k and 4plexes were selling for $650k to $700k, it was a no brainer for me to buy condos because the probability of these condos to outperform 2-4 units were much greater. During the top of the market, these condos were selling for $400k in while duplexes were selling for $700k-$750k and 4plexes were selling for $950k-$1M. Apparently, condos were mis-priced due to HOA delinquency being greater than 15%, and financing was impossible to get. Some newer complexes were under litigation so financing was dead. The loophole was buying them for cash and obtaining a HELOC on these condos. HELOC is being treated like a consumer loan and not a mortgage.

Fast forward to 2014, these identical condos are selling for $300k-$325k while duplexes are selling for $550k-$600k, and 4plexes are selling for $950k-$1M. Buying condos paid off. Another thing that I discovered is that you can get a $150/month premium in rent with condos that have inside washer/dryer and diswasher. MF generally don't have these amenities.

That fact that it no longer makes sense to buy condos and even 2-4 units is because the price/door is much higher than with condos and 2-4 units. You can buy $200k-$210k/door with MF while you have to pay $300k/door for condos, $275k/door for duplexes and $250k/door for 4plexes. With respect to financing, it's 3% for MF with a 5/1ARM while it's about 4.5% for 2-4 units with 30-year fixed now. That means if interest rate were to rise 300 bp from today, it's about break-even to service the debt in year 5 - 10 for MF compared to 2-4 units. 5/1 ARM with 10 year ballon is huge in my opinion. Something that you can do with MF, but cannot do with 2-4 units is forced appreciation. If I owned these MF by myself or with just one partner, I'd find a way to add inside washer/dryer and dishwasher for each unit and collect the $150/month premium rent. I'm still evaluating this MF model as I go along.

As mentioned above, I'd prefer owning SFHs over 2-4 and MF any day. However, we are in a middle of a housing cycle where it makes more sense to own MF than 2-4 units. That's all.

We can debate until the cows come home on how high interest rate will go up in the coming years. I still remember when people were screaming we're going to have hyper-inflation due to the massive printing of USD in 2009. 5 years later, we have lower interest rates compared to then.

With the stock market in correction mode in the recent weeks, Janet Yellen has already back-peddled on her QE forecast. In my opinion, interest rate cannot go up while we still have inflation below 2%. Interest rate cannot go up with low loan applications, low refinance, and low volume home sales. Banks have to come up with creative ways to make a profit now because the volume of business in their mortgage department has dried up. The economy is still improving at a very slow pace. Of course, if I could lock a 30-year fixed mortgage at 4% or less, I'd do that any day. At 5%, I have to think twice.

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  • Chuck Holland
    Real Estate Investor · Westminster, CA · Member since 2014 · 42 posts · 16 votes
    12y

    I only have duplexes. Never had a double vacancy. At least if one unit is vacant, I can still carry the property without getting squeezed too much because of other units rents. It's uncomfortable, but manageable. I'm sold on duplexes. I'm always on the hunt.

    3Reply
  • Account Closed
    Investor · San Jose, CA · Member since 2012 · 2k+ posts · 3k+ votes
    12y

    J,

    There's no right way or wrong way. It depends on where we are in the cycle and personal preference. If I have a choice, I would only own SFHs, maybe townhomes and even condos... gasp....I no longer hate HOA with a vengeance like I used to. I don't really care for 2-4 units because of their location. I don't care for MF that are located immediately adjacent to other MF.

    When condos were selling for $150k, duplexes were selling for $350k to $400k and 4plexes were selling for $650k to $700k, it was a no brainer for me to buy condos because the probability of these condos to outperform 2-4 units were much greater. During the top of the market, these condos were selling for $400k in while duplexes were selling for $700k-$750k and 4plexes were selling for $950k-$1M. Apparently, condos were mis-priced due to HOA delinquency being greater than 15%, and financing was impossible to get. Some newer complexes were under litigation so financing was dead. The loophole was buying them for cash and obtaining a HELOC on these condos. HELOC is being treated like a consumer loan and not a mortgage.

    Fast forward to 2014, these identical condos are selling for $300k-$325k while duplexes are selling for $550k-$600k, and 4plexes are selling for $950k-$1M. Buying condos paid off. Another thing that I discovered is that you can get a $150/month premium in rent with condos that have inside washer/dryer and diswasher. MF generally don't have these amenities.

    That fact that it no longer makes sense to buy condos and even 2-4 units is because the price/door is much higher than with condos and 2-4 units. You can buy $200k-$210k/door with MF while you have to pay $300k/door for condos, $275k/door for duplexes and $250k/door for 4plexes. With respect to financing, it's 3% for MF with a 5/1ARM while it's about 4.5% for 2-4 units with 30-year fixed now. That means if interest rate were to rise 300 bp from today, it's about break-even to service the debt in year 5 - 10 for MF compared to 2-4 units. 5/1 ARM with 10 year ballon is huge in my opinion. Something that you can do with MF, but cannot do with 2-4 units is forced appreciation. If I owned these MF by myself or with just one partner, I'd find a way to add inside washer/dryer and dishwasher for each unit and collect the $150/month premium rent. I'm still evaluating this MF model as I go along.

    As mentioned above, I'd prefer owning SFHs over 2-4 and MF any day. However, we are in a middle of a housing cycle where it makes more sense to own MF than 2-4 units. That's all.

    We can debate until the cows come home on how high interest rate will go up in the coming years. I still remember when people were screaming we're going to have hyper-inflation due to the massive printing of USD in 2009. 5 years later, we have lower interest rates compared to then.

    With the stock market in correction mode in the recent weeks, Janet Yellen has already back-peddled on her QE forecast. In my opinion, interest rate cannot go up while we still have inflation below 2%. Interest rate cannot go up with low loan applications, low refinance, and low volume home sales. Banks have to come up with creative ways to make a profit now because the volume of business in their mortgage department has dried up. The economy is still improving at a very slow pace. Of course, if I could lock a 30-year fixed mortgage at 4% or less, I'd do that any day. At 5%, I have to think twice.

    8Reply
  • Michael Moikeha
    Investor · Portland, OR · Member since 2014 · 354 posts · 149 votes
    12y

    Most important is just knowing what you want, so when you create a plan of action, you know how to get there. It sounds like you know what you want, and you know how to get there. If you are at the stage where holding now gives you the cash flow you want, then you could not ask for better rates!

    2Reply
  • Account Closed
    Lender · Tampa, FL · Member since 2014 · 543 posts · 168 votes
    12y

    The Nasty...Ugly... "800 pound Gorilla in the Room"... for Investors/ borrowers and all borrowers for that matter, is this Dodd Frank Act!

    Borrowers have been experiencing the Horrendous and Crippling effects of Over Regulation Nation via the Dodd Frank Act, just ask anyone who has closed or tried to close on a loan over the past years.

    Even though some banks are now starting to look at 1-4 units, if purchased in the name of an LLC for Business Use Only (i.e. 12 month of more rental), as Commercial (not subject to Dodd Frank Act), the vast majority of Banks do not and are implementing very strict lending guidelines on 1-4 units.

    Therefore, from a "Borrowing" side and if you need flexibility, you may want to stick with 5 units or more.

    Investors have loan options at 75% LTVs or higher CLTVs in the upper 4% range with 30yr amortizations on these type of Commercial properties.

    Hope this helps.

    2Reply
  • J. MartinPro Member
    OP
    Rental Property Investor · Oakland, CA · Member since 2011 · 3k+ posts · 2k+ votes
    12y

    @Chuck Holland , good point on the vacancy and diversity.. Of course, if you have 2 SFH instead of 1 duplex, same deal.. MF is even better in that diversification regards.. Vacancy is more consistent.

    @Minh L. . , you are spot on about condos, and about the per-door pricing on MF vs 2-4. I tried to buy a couple condos, and a loft in W Oakland a few years back, but wasn't feeling good about some of the crippled HOA's.. In retrospect, I should have just snagged a couple. But they never had much CF w/ the HOA, so it's pretty much an appreciation play.. And appreciate they did! Almost 100% up already for most in Oakland. So I agree, that play is probably too late.. I still like MF too. Keep me up to date on what you're looking at, and maybe I'll hop in on one of your syndication deals..

    @Michael Moikeha , I have a good idea of what I want. So it's working out well. And I agree, with financing at these rates (variable or fixed) - we should all be thankful. Don't forget to send a thank-you letter to Bernanke and Yellen!

    @Account Closed , funny you mention over regulation nation, because I'm a bank regulator in CA! lol No offense taken though. I don't write the rules. Just a lowly examiner, enforcing them. We mostly do commercial though, so not much consumer/residential involvement...

    1Reply
  • Johnson H.Pro Member
    Investor · San Francisco, CA · Member since 2010 · 910 posts · 889 votes
    12y

    Sorry for the late reply, I had forgot that I was tagged on this.@Chad Standish Thanks @J. Martin.

    There isn't really a right answer to this question. There are many roads in investing in real estate with positives and negatives to every niche. I started out with single family homes because I wanted to invest in good school districts and SFH was only available in those areas. I also did not have much money to begin with and I could buy almost rent ready properties with minimal rehab versus buying multifamily and rehabbing every single unit which would use up a lot of my capital.Back in 2010, I did not think the market could go much lower and I wanted to utilize as much cheap debt as possible. With that in mind, I purchased three homes with 10% down using Homepath properties. In the market I was investing in, I also was not comfortable with the tenant base a lower end multifamily would have as I began investing. I wanted families in my homes that could potentially stay long term due to the good school district.

    Currently, I am looking at bigger deals that I can bring in other investors with cash flow and that means apartment buildings for me in higher rent areas. Other bigger deals I have seen investors partake in are office buildings, motel/hotels, retirement centers, and development and I am open to all of them in the future.

    I would advise any new investors to read up on all the difference classes of real estate, understand the negatives of each one, and ask yourself if that is the type of property you want to invest in. In addition, a new investor needs to figure out what they want to deal with. Do you want to deal with tenants? Do you want a lot of tenants (MFH) or few (SFH). Do you want to put all your eggs in one basket and buy one large property (MFH) or a few SFH spread out? I travel often for work and I travel out of the country for pleasure. Even if I wanted to invest in my backyard, I would need a property manager which is why I am open to out of state investing. In addition, I am a busy person and don't want to deal with tenants, so I have property managers handle tenants and repairs. Repairs are going to be more expensive than if I were to do them myself and that is the trade off I am willing to take. It is not always about the numbers, I want to live the life that I want and don't mind paying for the help while I make money as well.

    You want the investment to fit your lifestyle, you do not want the investment to dictate your lifestyle.

    4Reply
  • J. MartinPro Member
    OP
    Rental Property Investor · Oakland, CA · Member since 2011 · 3k+ posts · 2k+ votes
    12y

    Great points @Johnson H. , and thanks for the reasoning behind it..

    Especially about the investment meeting your lifestyle needs. To me, this is all about having the right people too.. That key agents, property manager, handyman, etc, that you can rely on to get everything done for you. And having good systems and documentation in place to get things done quickly and correctly. I still PM 6 units and hoping to add another 4 with the contract I'm in right now. I do all the final leasing, but handyman takes all the calls from tenants, fixes everything, shows the unit when leasing.

    I already have listings, pics, extra phone number, application copies, tenant checklist, screening process, etc, so the lease-up is pretty easy. But I still pencil in the management fee on my deals for when I don't want to do it any more. My 4plex was Homepath (but used FHA). I still like that 10% down for investors, but the pricing is just too high above market around here for Homepath right now, IMHO. Maybe less so in other areas..

    Just like you and @Account Closed , I like MF too. Part of my strategy on 2-4 is because I try to invest about $50K every 6-12 months, and I can buy a 4plex with a 50/50 partner with that amount. But I haven't had the opportunity to invest in a MF at that price point with someone I can trust - maybe until now, Minh and Johnson!

    1Reply
  • Account Closed
    Investor · San Jose, CA · Member since 2012 · 2k+ posts · 3k+ votes
    12y

    Johnson,

    Great post. It's great that you were able to get in with 10% down on Homepath properties. As J mentioned above, we have to pay a huge premium for Homepath properties now so That option is no longer attractive.

    Like you I had to work with limited resources. Thus, I spent time and learned how to buy trustee sale properties. That was the only way to get them for 75-80 cents on the dollar. With cash out refinance obtaining a HELOC at 75% LTV, this technique was so valuable because so little of capital is tied up.

    I love trustee sale because it's a very straight forward process most of the time. Unlike REOs and short sales where agents did funny things to get lenders to accept low prices. As foreclosures dried up at the courthouse steps and prices was going up at a rapid pace, I called all the listing agents on PENDING short sales. Basically, I told them I can close the deal all cash if the short sale fell through. I let them double ended it. That strategy paid off. I was getting "old" prices. :-)

    When I decided to get into the condo & townhome niche. I studied all the complexes I was targeted. I knew what the OO/NOO ratio, HOA delinquency rate, how much each unit can rent for, whether or not the complex is in litigation, how much these units were sold for during the top of the market, etc. Basically, I knew everything about each of these complexes. That was how I navigated it.

    When I got a phone call on a pending short sale that fell through, I always asked for the listing agent to allow me to finance the property first. Most would say yes. If there's not enough time to close, I'd bring in the cash, which I borrowed from my sister, cousins and aunties. :-)

    I completed 2 cash out refinances in December and 2 more in February. All debts are officially paid off including the HELOC on our primary residence. I can now declare that the last 11 properties that we bought were all 100% financed. My Ponzi scheme has completed. The last 5 years has been the biggest blessing in my life, and I know it did wonder for you, J and many investors who took action and capitalized on it. Well done gentlemen and gentle ladies.

    All beers are on J this coming Friday. :0)

    2Reply
  • Johnson H.Pro Member
    Investor · San Francisco, CA · Member since 2010 · 910 posts · 889 votes
    12y

    @J. Martin - Nothing passive about these passive investments. It's great that you are putting together these systems. 10 units, you are surpassing me! I remember back in the day when you were asking me about my investments and you didnt even know about BP! You are doing good buddy. Let me know about your future investments, I maybe interested. However just to warn you, I say NO alot more than I say YES!

    @Account Closed - It's amazing what you did in such a short period of time. You absolutely killed it! I know these deals that you got didn't come on a silver platter for you. Due diligence, perseverance, and discipline is what every successful investor does which definitely sounds like you. Nothing easy about the real estate game, got to hustle every single day.

    2Reply
  • J. MartinPro Member
    OP
    Rental Property Investor · Oakland, CA · Member since 2011 · 3k+ posts · 2k+ votes
    12y

    @Johnson H. , it's definitely not passive. But I've been able to decrease my time spent managing my properties as I've added units. And I still have some low-hanging fruit I can improve on.

    It looks like I have this one all financed the way I like it with a 50/50 split with my partner from the last deal. But I'll show you the numbers on my deals so far, and what I'm looking at. The biggest difference from your targets, of course, is that I'm in lower-income neighborhoods that don't have great schools. But reasonable commute distances to SF & Oakland, near transportation, and no open land to build. They are generally the most affordable places to live in the area.

    My thesis is that these places will always have rents equal to some percentage of rents in more desirable areas of the Bay, so it is an affordable proxy on more prime areas, and offers cash flow from day 1, with a lot of upside in rents. These properties also tend to increase more in price on a percentage basis when the market heats up (See my other post for link to chart). Although less reliably, and drop further in when the bottom falls out.

    1Reply
  • J. MartinPro Member
    OP
    Rental Property Investor · Oakland, CA · Member since 2011 · 3k+ posts · 2k+ votes
    12y

    @Account Closed , I wish I would have had your diligence in finding out everything on all the complexes. I was doing it piecemeal, and not very efficiently. I should have better utilized some agents or VA to gather information for me. I also wish I would have had your conviction to plunge in head-first. I was maximizing very little leverage, which worked out well. But I have not brought in as many people as I potentially could (still) - and increase volume. Partially, I think I wanted it to be more proven, before I get everyone into it. But now that I have a good level of confidence, the deals are just good to great, and not blowout homeruns like they were then..

    Good job on having the the long-term sight to gobble up assets while everyone was scared (including myself to some extent). It paid off handsomely! I'll be catching up to you for a long time! lol

    @Johnson H. also, congrats on all of them. It was nice to know another examiner was out there doing deals too. There's some level of comfort in knowing you're not crazy when other people in a similar boat are doing the same thing..

    1Reply
  • Chad Standish
    Hard Money Lender · Memphis, TN · Member since 2013 · 11 posts · 10 votes
    12y

    @Account Closed Thank you for your sage market advice and your expert breakdown of the different strategies of condos, 2-4 units, and MF. This really cleared up a lot of questions I had about the different approaches.

    @J Martin I appreciate your insight on your strategy of properties that are close to SF and commuter lines opting for the less expensive end. My question for you is how do you like PM? Are you hoping to exit that space?

    @Johnson H.

    I think you had some of the greatest advice above all. As all good investment strategies aim to give you a good return, a more holistic way to look at that is how the investment fits with your lifestyle/and or comfort level of risk. Thank you for posting that, I think I had a real moment of clarity then before.

    @Steve McRory I am curious to know more about how you think the Dodd Frank act has affected the investment lending space for conventional and non-traditional finance? I come from the world of conventional, but now work for hard money lending and I don't feel that I am properely educated on how the bill has really changed the landscape. Please let me know.

    Also thank you for everyone who is posting I am getting a great education and I appreciate your insight.

    3Reply
  • Chad Standish
    Hard Money Lender · Memphis, TN · Member since 2013 · 11 posts · 10 votes
    12y

    @J. Martin

    1Reply
  • David Krulac
    Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes
    12y

    @J. Martin

    I have all 3.

    I prefer SFH because:

    1. easier to buy

    2. easier to finance

    3. easier to sell, most buyers are owner occupants

    4. less appliances to repair/replace

    5. lawn care, snow shoveling done by tenants

    6. tenants pay more utilities

    7. tenants take care of more minor repairs

    8. tenants stay longer, have tenant that moved in in 1984

    9. tenants plant flower, etc in yard

    10. most neighbors can't tell that it is a rental property, especially when the occupant has been there longer than the neighbor owner occupants.

    I guess I can still do Dave Top 10 for 1 more year.

    4Reply
  • J. MartinPro Member
    OP
    Rental Property Investor · Oakland, CA · Member since 2011 · 3k+ posts · 2k+ votes
    12y

    @Chad Standish , I don't mind the PM'ing (partially because my handyman does a bit of it). I think the savings on not paying a full-on property manager, coupled with the increased performance (through more diligent tenant selection and having a handyman on-site since I really care about my properties) is worth the time I spend on it. Not more than 5-10 hours/mo on average for $100K of gross rents (annually) - with some extra time on new acquisitions (in contract now on 2 duplexes in Oakland). And I usually only 4 days/wk at my full-time job, partially because of this extra cash..

    1Reply
  • Johnson H.Pro Member
    Investor · San Francisco, CA · Member since 2010 · 910 posts · 889 votes
    12y

    @Chad Standish - Thank you for the kind words. I am glad I said something that resonated with you. I think too many times investors are looking at the potential yield more than how it fits in their lives and strengths/weaknesses. To many times people are trying to "make it work" when there is plenty of low hanging fruit by giving up a bit of yield.

    @J. Martin - It really is surprising at how few investors their are in our line of work. It sounds like you have surpassed me as an investor as I am not working four days a week. Jealous!

    1Reply
  • J. MartinPro Member
    OP
    Rental Property Investor · Oakland, CA · Member since 2011 · 3k+ posts · 2k+ votes
    12y

    @Johnson H. , I'm shocked too how few of our coworkers invest in real estate! (except for lots of primaries). I've been telling them for years, but to no avail.. And I agree with Chad on that great advice too on how it fits your life. I think our investing goals are the same, by the jealousy over the 4-day weeks! lol I told my boss, I'm looking forward to my next promotion to being to part-time! Even got my inspections (personally) done w/ my handyman on my 2 duplexes in contract today after finishing telework after a local exit meeting.

    That's not counting my 2 weeks off for xmas and new years weeks, 4th of july week, a couple random weeks throughout the year, all the regular holidays, a month and a half in Europe last Sept/Oct, and planning 3 straight months in Asia for 2015 or early 2016 (if all goes to plan). So the PM'ing and investing has been working out OK so far!.. lol

    0Reply
  • Jay Y.
    Investor · Santa Clara , CA · Member since 2013 · 155 posts · 144 votes
    12y

    @J. Martin props to you sir! Love how you have the whole work/life balance thing figured out as well.

    1Reply
  • J. MartinPro Member
    OP
    Rental Property Investor · Oakland, CA · Member since 2011 · 3k+ posts · 2k+ votes
    12y

    Thanks @Jay Y. ! I've been fortunate to have found the job and real estate exposure I have. Here was my schedule today:
    1) Check up on the meetup I scheduled, with Josh Dorkin and Brandon Turner in attendance (up to about 60 investors!) (and about 20 min from home)

    2) Check up on my first order of product directly from a Chinese factory (unrelated)
    3) Lead a meeting and deliver our analysis to a team of executives and board of directors at a multi-billion bank (relatively quick drive from home)
    4) Follow-up on proposed delivery of message for even bigger bank (from home)
    5) Perform inspection for 2 duplexes in contract for close just after end of April. (15min drive from home)
    6) Go on BP and check up with awesome investors
    7) Crack open a beer. Friend coming into town for the night!

    0Reply
  • J. MartinPro Member
    OP
    Rental Property Investor · Oakland, CA · Member since 2011 · 3k+ posts · 2k+ votes
    12y

    Last weekend, went up to wine country in Healdsburg for a bday party; delicious drinks and food, and relaxing. Saw a geyser. Some great people. Beautiful area.

    And I've been to Seattle, Portland, New Orleans for Mardi Gras, Chicago, Philadelphia, D.C., and all over Western Europe since I bought property (including Munich for Oktoberfest!) I'll also be hosting a meetup in Malibu next month while I'm there for a week at Pepperdine!

    http://www.biggerpockets.com/forums/521/topics/125084-malibu-meetup-week-of-sun-5-11-5-15-whos-in

    ..While working at a (officially) full time job. So I've had a good work/life balance, and value it a lot. And I'm not even that organized! Imagine what one of you diligent folks could do!

    0Reply
  • Account Closed
    Investor · San Jose, CA · Member since 2012 · 2k+ posts · 3k+ votes
    12y

    J,

    Are you planning on taking a partner to Asia? I can be your partner.

    J, you're leaving us in the dust here. You have to slow down for us to catch up with you on your acquisition spree.

    @Johnson H. , I asked J if he needed a partner on one of his recent duplex deals. HE TURNED ME DOWN. I'm still hurt over it. :(

    It's sad, so sad. It's a sad sad situation, and it's getting more an more absurd. Ok, I don't know what song that was......LOL!!!

    1Reply
  • Tracey Williams
    Investor · Columbus , OH · Member since 2010 · 311 posts · 51 votes
    12y

    For me choosing to go multifamily now is because of my goals of what I need to come in as income every month and having a multifamily of 4unit or more will help me to achieve that.

    Good question! Got me to go back and look at my goal for the next 3year

    Tracey

    2Reply
  • Johnson H.Pro Member
    Investor · San Francisco, CA · Member since 2010 · 910 posts · 889 votes
    12y

    @J. Martin - Sounds like great travels buddy, very similar to mine. I leave the country at least once a year. I did Hong Kong and Burma last Feb and Europe in May!

    @Account Closed

    @Account Closed - I am going to Korea and Japan next month, want to join me and my gf? Lol

    Maybe I will decline you investing in my deals as well! Then it will make you want to invest with me even more... Haha

    1Reply
  • J. MartinPro Member
    OP
    Rental Property Investor · Oakland, CA · Member since 2011 · 3k+ posts · 2k+ votes
    12y

    @Account Closed , I love the topic about what real estate brings TO our our life, instead of just the time we spend on it, but a little off this topic, so I started a new thread here.. What has investing brought to your life? What are some tips you can share with our fellow investors on how to find that balance and make their investing life easier?

    http://www.biggerpockets.com/forums/311-buying-selling-real-estate/topics/125415-work-life-balance-and-staying-sane---your-tips

    0Reply
  • J. MartinPro Member
    OP
    Rental Property Investor · Oakland, CA · Member since 2011 · 3k+ posts · 2k+ votes
    12y

    @Account Closed ,

    First, I really didn't mean to say no to you so quickly about investing on a deal.. Not in a bad way, at least, like I am refusing you as an investor. I would be proud to have you as a partner on a deal. What I MEANT to say was that right now, I have this deal fully funded on a 50/50 basis with terms that fit very well for my existing investor and myself on this particular situation. And that if something changes, or when I'm looking at the next one, I would be happy to show you the numbers and talk to you about it if you're interested. And likewise, keep me up to date on yours. I like what you're working on in the South Bay. I'm doing the East Bay version on smaller buildings..

    But I'm just doing this 'mom and pop' stuff.. buying a couple houses or couple duplexes at a time.. (with bigger % share..) I don't have big deals where I can just have investors hopping in and out on each deal. Each investor is important in the structure, so the existing investors don't get their % share jerked around on every deal.. (I would only do 3 separate investors max on these small 2-4 unit deals) But again, I'll talk to you about it on the next one..

    For Asia, I would love for you to show me around somewhere in Asia on part of my trip! (at least, most people I've talked to can't usually take 3 months off, so I have a few people to meet up with on my trip..). I have friends in Japan, a good friend to show me around the Philippines, connections in Mainland China & Vietnam, an interest in Thailand.. Open to ideas on destinations... where can you give me the best inside scoop?

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