All Forum Posts by: Ho Eun Park

Say you found a really good deal, and you are starting out or have many years experience in investing in rental properties via self management or using the management companies. Pretty much in any scenrios. 

Would you ever buy rental properties (multiple units that cost few millions) with business partner(s)? Business partner(s) can be friends/family members/spouse if you keep things as seperate properties/or through other connections? 

I'm just picturing a scenrio where you have 200-700k and your potential business parter have 200-700k for down payment for 2-15 million+ multi unit properties.  Is that feasible? Would it be good to make it as a living trust or under corporation to have enough for expenses and distribute rental income?

OR never do that and just keep it small until I can purchase it on my own?

Thank you so much for everyone's reply. They were very insightful and with good information!

I am not familiar with your area but I hope that these may help you.

The things I did to find tenant for my properties:

1. post ads on craigslist. I was very skeptical at first but I'm actually surprised that some of my very good tenants were from craigslist after a friend told me about posting an ad there to advertise my home... I even had a very long term tenant in one of the properties for 4 years since its near a university and most stay for 1 year). - HOWEVER watch out for scams such as the nigerian check scam or people trying to pay you rent without even seeing the place.  They "accidentally" over pay the rent and ask for a  refund. Don't cash in the check. If people dont come to see the house, then I find that as a red flag. But since you never know who you are showing the home, always have a buddy or someone with you when doing a house tour to potential tenant. It's best to be safe. Your well-being is number one priority.

2. I am not sure how socially active you are on media platforms such as instagram, facebook, etc but I have found tenants through joining  groups like "Name of the university  Housing/Roommate Search" groups catered to university students or local housing/roommate shares group where its more catered to family/working professionals. Here you can actually have a preview of your potential tenant from their profile. Found decent students and non-student tenants just from facebook alone.

3.  Try finding other website platforms to advertise - other websites in your state that advertise rental properties

4. If you manage your own property, maybe go to a management company to list your property for a fee  (just advertising minus the management) 

5. Go to a real estate broker and ask them to post up your listing  for a fee. 

6. Last but not least, put a big sign in front of your house saying  "FOR RENT" - I actually did this and found people within few days.

Hope these help! Good luck!

Hello, 

I am new to the forum. I have been thinking about real estate investing outside of California for various reasons. Mainly due to price.  

I have been looking into Las Vegas, Dallas, Houston, Austin, and Chicago as of interest (maybe anywhere in Tennessee too?). 

The prices seems good (I hear a lot of people saying its over-valued but when comparing to CA prices, it seems much better and affordable). 

I was hoping to get some input/advise/recommendations/etc.

For now I'll just cater the list mainly for Las Vegas but most of the list will be applicable to other states as well

1. Las Vegas, Nevada 

pro's & my interests:

- I can possibly use it as vacation home if I buy duplex or multiple units.

- price is affordable with my current income. 

- Lot more inventory to work with (flexibility)

- I see many affordable homes 150k-250k range and multi unit homes around 250-400k range

- Thinking of buying between or near UNLV university/ main strip so I have faculties, staff, students from the universities as well as employees from the casino/hotel

- Property Tax is cheaper (but can be a con in other states).

Con & other inputs: 

- I feel like Las Vegas have short term residence more than long term residence (most of the properties seems to be owners who are not purchasing to live but to use it as vacation home or short/long term rentals.... so many properties can be vacant and potentially allow squatters/long eviction process)

- Nevada law require a "responsible" person aka landlord/property management within 60 miles 

- Distance (I like to buy my properties locally because I can stop by or fix something if needed either by myself or contractors that I work with/familiar with

- Property Management fees since long distance 

- Finding a property management company that is reliable and trustworthy.

- Unfamiliarity with the area/surroundings

- Lower Rent compared to CA but I know I can't compare apples and Oranges (But I don't want to invest just to break even)

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- Tax questions ***Some state does not have tax on income(?) like Texas I believe...? So does that mean I only pay rental income tax in California/Federal tax? 

- Property Tax is rising especially Chicago, IL

Currently I am getting cap rate of 5.6% (really nice area) - 7.8 % (lower income area) cap rate in CA but some of the properties are located in not so good areas and I did have problems with problematic tenants. However I never had vacancy (the most is 2-3 months while looking for new tenant and fixing up the place before the new one comes in). 

I am wondering if I were to invest out of state, should I go for higher cap rate which usually are located in so-so or not too good neighborhood/lower demand or try to sacrifice some % cap rate with better neighborhood/higher demand?  

Currently, I am just researching the neighborhoods in various states and I guess next big thing is to determine a good management company once I have a property or properties in mind. That leads to my next question... how did you find your management companies when you invest somewhere abroad or out of state? I have heard some horror stories from mutual friends and just reading up on forums based on people's experiences. How do you determine a management company as someone you can trust and rely on? I have been browsing through google and yelp reviews but I see good and then I also see the bad reviews in detail description.  

I really want to venture out of California and would like to gain some of your personal experience /stories and any advice or recommendations (i.e. what to watch out for, don't make the mistakes I made, some laws I should be aware of in taxes/landlord/tenant laws, and etc.)

Thank you for your time!