All Forum Posts by: Frederick William

 You have the option of educating yourself before rushing into a huge purchase that has a lot of risk.

Beyond that, there's a lot you can do in Real Estate with a million dollars. Leverage is a great tool as well. No need to buy 1 property for a million cash when you can buy...more than 1 for example. Could always buy 1, make sure that goes well first, then buy more. Foolish decisions are made when rushing. 

There's also the stock market and syndications.

Explore your options. And you can always do hybrids.

Just some of my thoughts,

How many units will you get for $1 million?

How close are current rents to market rent, how much work is needed to bring the units up to market rent. Is Market rent most likely to be Section-8, if so how many bedrooms do these units have?

How close is current vacancy to average vacancy for that area?

Is the area machine gun alley with drive-bys thinning out the population on a regular basis? Call LAPD and ask about the complex and the area.

Has LAPD pulled out of the area and it's now patrolled by the Sheriffs department or State Police due to massive overwhelming crime.

Also are most of the other apartment buildings on the street matchy-matchy, or are the buildings very dissimilar?

Does the street and a few blocks around seem like a residential area or an industrial area (with land use being manufacturing or warehousing, or trash dumps)?

Are you afraid of the people in the general area, or will being there yourself not be a problem?

Can you line up a reliable hard working property manager for the place, or will you have to self manage?

Will workmen go down into the area during daylight hours to do fixups or will you have to do them yourself? (you call Adee Do and find out Adee Don't).

How close is it to the main commercial corridor (in Crenshaw, the Crenshaw business corridor" AKA the heart of African American commerce in Los Angeles").

How familiar are you with the culture of that area (know your customers, and know what they want for their rent money/voucher).

Is the graffiti load mainly tagging or is it gang related? Ask the Police or study up on it yourself online.

Have you ever been down there after dark and heard the level of gunfire in the general area--if any (and does this dissuade you from owning there).

Good Luck!

@Frederick William No experience but you want to buy a million dollar multi-family property?... These two things don't go together. 

We all started from somewhere but I encourage you to read, learn, engage, and understand the basics of REI. Investing is math, art, and networking. Without these pieces you'll struggle.

 How much experience do you have with real estate investing? 

This type of real estate is sophisticated (regardless of neighborhood class), high returns, and high risk.