All Forum Posts by: Leo Kanell

Hey Michael,

There are still some bread and butter areas in Cali where you can actually pull out some affordable properties like in Bakersfield and Fresno.  You are correct the Cali market is expensive, there are a lot of affordable houses still in the midwest of the US in the Michigan, Ohio, Indiana areas, Texas has some affordable markets.  Whatever you do I highly recommend you have a property management company manage the properties.

I'm with Zack Karp, I would look at buying apartments in a very good area and have a property management company manage the apartments, make sure you keep cash on hand in case there are vacancies or unexpected expenses.

I have bought over $5M in property, I have had apartments and flipped single family homes, if you do decide to buy single family homes, do it under 200k a piece, in other words do not buy the big expensive property even if it is a great foreclosure deal, because if you can't sell it quickly, at a higher price it is nearly impossible to rent it out and cover your mortgage payment.

You could buy 7 or 8 100k homes and put 20k down on each and at that price point definitely look for some good deals i.e foreclosure, distressed home owner, whatever you do, take your time, regardless of what any realtor tells you, take your time and make smart decisions.

The current owner is selling it again, here is the link to the property it is a beautiful property, but it was a mess when we bought it.

http://www.zillow.com/homedetails/12108-S-Pendleton-Cir-Draper-UT-84020/12929578_zpid/

That was back in 07 & 08 just as things were getting ready to crash.

This year I am looking at putting capital in 3 potential RE investments:

• Multiple SFR from 100k to 250k

or

• Apartment Buildings 10 to 20 units at a time

or

• My office landlord is a developer and builds apartments that he keeps for max cash flow and doesn't sell, does very well he is worth 15M to 20M, I would like to learn from him and perhaps invest with him on a project.

And you what investments are you looking at this year?

So this was back in the good ole days, my wife was driving through a neighborhood and saw a 9k house on 2 acres for 1.3M, it needed work, but there were no other lots like that one on a private golf course.

We bought it, miraculously came up with the 300k to fix it up and then sold it for $2M just before running out of money.