Buying Apartments...again!

[Jamie Garcia]

Hey Everyone! I'll keep this short. I live in Los Angeles County I'm 26 years old. My dad and I are partners in RE. My question is about 2-3 years ago he sold his only apartment complex witch was a 4-Plex in Toluca Lake near Universal Studios. The area was real nice but he said he hated dealing with the annoying tenants. That they were a pain. I'm convinced I want to reintroduce Multi-Family Apartments into my portfolio but I'm not sure how to convince my dad/partner to re-enter the space with me... Any ideas? Love to get some BP member feedback!! Best, Jamie

[Gregory H.]

@Jamie Garcia A few thoughts:

One, even if you are self managing the properties, you should be factoring in a property management fee when considering a purchase because of scenarios like this one. If your dad hates dealing with the tenants, vet some local property managers and have them deal with the day to day issues.

Two, I am not sure how the two of you are putting in equity right now, but maybe have him put in more equity upfront then you manage the property & take the burden of tenants away from him.

Three, you may have already done this, but I would run it by your dad to make sure he is okay with you posting the value of the portfolio online. Some parents are less comfortable publicizing their finances than others.