All Forum Posts by: Scott Malkin

Yes, I am simply paying for paint as the tenant wants to paint, I am not asking them to. Thanks. 

I have a 10 unit building in Santa Monica. No employees apart from a gardener who is self-employed. Do I need workers comp insurance? Already have apt owners insurance through State Farm as well as a commercial liability umbrella policy? Will I be covered if a plumber or handyman without their own insurance policy is injured at my building?  Or better yet, what if I reimburse one of my entitled rent control tenants to paint their apt and they 'slip and fall'....

Thanks !

The goal is maximizing investment return. I have no problem with trading the ability to drive by my property(ies) for a better return. I suspect SM will have better appreciation than Texas, but that is of course speculation. That's why I'm thinking that perhaps taking some equity out and moving it to places like Texas may be the way to go. Of course the building is getting older resulting in more expenses, so that's an issue too.

Should we stay or should we go now? Or both? We have a 10 unit apt building that has been in the family for decades and thus unencumbered. Located in Santa Monica with all the wonderful things that go along with such an ideal location- beaches, eternal sunshine, hipsters, rent control, deferred maintenance and high price/rent ratios.

So, should we sell the building and buy better-performing property in a growth area/ landlord friendly / high (property) tax area such as Texas (Dallas-Fort Worth, Austin, San Antonio)? Or, perhaps, do both; that is, stay in Santa Monica, pull some equity out and move it to Texas?....

Looking forward to the responses.

Hello everybody, was curious to get some general insight / varying opinions from seasoned investors about real estate investing strategies as they relate to my particular situation. (Also not opposed to very specific advice either).

Ok, for starters, let’s assume I have $100k cash to invest in real estate (ideally multi-unit properties). Let’s also assume I have adequate cash reserves beyond this as well as a good income (vague, I know, but let’s just assume I don’t walk around with a sign stating “OCCUPY! I AM THE 99%).

Also, I am not looking to spend a lot of time managing this beyond the initial research, due-diligence required, etc for initial investment(s) and further acquisitions down the road as the climate dictates (ie, real estate investing won’t be my full-time job). Furthermore, I am not necessarily looking for cash flow in the short-term (apart from, of course, having adequate cash flow to cover debt service/ property management/ repairs/ vacancy, etc, etc). Looking more towards long-term capital growth followed by high cash flow down the road (10-20 yrs or so…).

Let’s also assume property location doesn’t matter in so far as the plan is for them to be professionally managed (ie, Texas vs Vegas vs Beverly Hills doesn’t matter so much but prefer not to invest in ‘war zones’)….

Thanks for the replies, I guess i shouldn't buy it then, lol. I think I'll have to stay away from markets like San Diego with high purchase prices relative to collected rents.

So what do you guys think about a Texas duplex? Brand new duplex, $250k purchase, rents are $1275/side. Of course property taxes are much, much higher in Texas...

Thanks for all your replies. What about if one bought this property for $800k at 4.5% rate, 25% down, collecting $6000/mo rent. Using these numbers it seems to pass the '50% rule' screen. Any seasoned investors interested now?

By the way, on this particular property which has been on the market 1 week, there are currently multiple offers including at least one full price, all-cash offer.

Hello, new to this, first time posting, curious what everybody thinks about this investment:
- 3 unit property in San Diego
- current rents are 2400 +2400+1200 = 6000, sought after location, easy to rent
- purchase price $800k
- 1920's property, well-maintained/upgraded, no obvious initial work/repairs needed, has potential for historic designation/ Mills Act thereby reducing taxes
- while financials may not be ideal as solely an investment property, also considering possibility of living in one of the units for a while
- if owner-occupied I can purchase with 5% down, ~ 4.5% rate with no pmi...

Thanks, looking forward to everybody's comments!