Hello (for the first time),
I have to say that this is a great and informative site! I’m crash coursing my way through the podcasts and soaking up knowledge. Thanks for sharing all this valuable ins and outs of real estate. I’m not sure of what my specialty will be but at the moment I’m still leaning towards duplexes, tris’ and 4-plexes.
A little background:
My wife and I just closed on our first duplex last week in Los Angeles. We’re going to live in the larger 3-bed room apt and rent the 1 bedroom apt upstairs that has a separate entrance. We would like to hold long term and build a portfolio that kicks off cash flow and also appreciates over the long term. We’re about 3 miles away from USC. Anyone that knows Los Angeles will tell you that downtown LA has come a long long way since oil baron Phil Anschutz opened the Staples Center down town LA in October 1999.
Fast forward to 2013. The new mayor of LA has launched a program called “Great streets LA”. Our cross street is part of that program.
http://www.lamayor.org/mayor_garcetti_issues_first_executive_directive_to_launch_great_streets_initiative
http://la.streetsblog.org/2013/10/10/day-102-garcetti-launches-great-streets-initiative/
Duplexes and the occasional triplex in near to “above average” shape in our area seem to start around the 300k mark.
I would love to keep buying around our current duplex but using the 50% rule, I’m realizing that in order to buy another duplex in say 12 months, I may have to look at Minneapolis (where I have family). I am looking at the area that fans out from the University of Minneapolis in a 3 to 5 mile radius.
I have seen multiple duplexes listed in Minneapolis for as low as 150,000. I am forming a relationship with a local realtor who tells me that there are even more duplexes etc. to be found in great shape for as low as $130,000 and possibly lower.
Without doing the entire math and factoring the land-lording etc aspect of it all, $800-$850 and $700-$750 rent in a $150,000 duplex looks mighty interesting.
As I stated before, for proximity and practical reasons, I would LOVE to keep buying duplexes/Tris/4-plexes in our zip code here in Los Angeles but the little knowledge I’ve gleaned so far indicates that this would mean we tackle this by either going after foreclosures or “subject to” (sp?) route?
I’d love to hear any and all pointers with regards to people who are doing what we want to do, or anyone who feels inclined to share their thoughts in this regard.
Thanks ever so much!
Francis
