All Forum Posts by: Daniel Reed

@Jonathan Greene 

So, are you suggesting that this issue is indeed driving investors away from Florida? I've been exploring MF properties because complexes in the $1M to $1.5M range appear to generate better NOI. However, from what I've observed, it's still not enough to produce meaningful cash flow. My main focus on Florida stems from an established working relationship with a property management company there. I realize this may not be a strong enough reason if the market dynamics have shifted.

As for California, my interest lies in the fact that I live here. Managing the operation myself could save money and provide better control compared to working with out-of-state properties. That said, the numbers in California don’t seem to add up for me. It’s either not a favorable market for real estate investment focused on cash flow, or perhaps my limited familiarity with the local multifamily market is holding me back.

Hi everyone, this is my first post! I found this forum through the audiobook Crushing It in Apartments and Commercial Real Estate.

I live in the Bay Area in CA, but have invested in Florida, where I fully own three townhouses bought over the past 10 years. They've been solid investments, with rising rents and property appreciation, but over the last 2 years, skyrocketing HOA fees and stagnant value growth have reduced cash flow. While still profitable, I'm exploring better opportunities and considering multifamily (MF) properties.

In my search for $1M properties (with $150K–$180K down payments), I've found that the NOI often matches the mortgage payments, leaving little to no monthly cash flow. I've focused mainly on Florida but have also looked at options in Sacramento and other slightly more remote locations in CA.

While I’m familiar with value-add strategies (ADUs, renovations or storage rentals), these seem like heavy lifts for modest gains. How do others manage to create positive cash flow from MF properties with debt? Any advice would be greatly appreciated!