All Forum Posts by: David Friedman

Hi @Patrick Fraire

We just bought a two unit in Riverside for about that price. If they are going to “Force” their Tenant on you, then I would ask for a price discount. As bad as this sounds from a moral perspective, if they want you to be nice to this tenant, you can take advantage of that in the form of a price reduction.

You need the ghost realtor!!! The Ghost Realtor - Nathan For You

It sounds like you have a problem tenant on your hand. Either way, I would find a way to get rid of this tenant legally. If they involved an attorney you will have problems with these people down the line, even if you solve this issue.

Don't be disillusioned, as harsh as that sounds. If you are looking for multifamily properties on the MLS or LoopNet, you won't find a deal. You could, but you'll have to make a strong offer on the first day or you'll need to know the agent. As soon as it hits the MLS, if it's a deal, they'll get 10 offers on the first day. In the run up in real estate prices from 2011, a bunch of institutional investors realized how safe of an asset multifamily was. As a new investor, you have to get a loan to be able to "Get into the game." But a loan charges 5% interest. These institutional investors are bursting at the seams with cash that isn't making any money. So an income producing property that returns 4% sounds pretty good to an institutional investor. What this means is that cap rates are pushed below what it costs for you to get a loan.

All of that being said, you have three options.

1. Wait around for a deal to come to you.

2. Start making friends with people that get multifamily listings or have access to distressed multifamily owners.

3. Find distressed multifamily and add value by fixing it up or renting it out or whatever it takes to push the cap rate above the cost of your loan, management, expenses, etc.

Hello! I am looking for someone who specializes in exterior stucco / painting who can do a job for me in Los Angeles / Los Feliz area. We need new texture on the property. Please call me if you’re a contractor that has availability in the next week or two.

I don’t expect a crash. I expect the market to taper off though. Jobs and wages are still rising. The market is frothy, but there are strong fundamentals holding up the market. Compared to 2007-08 people have more equity and better jobs. I think we will start to see the market of large metropolitan areas and the surrounding cities to transition more and more to a rental market. Single family homes will still be built, but it will move further and further out.

Hello everyone on BP, new and old users! (Some of us have been on here wayyyy too long)

If BiggerPockets had a bachelor's program, I feel like I graduated. I've learned so much from this community and as an alum, I try to give back to the newer members starting out. Not everyone comes from a real estate background. It's possible that you've rented your entire life.. BUT! If you are on this website, you're headed in the right direction. There is no better place for real estate info in the entirety of the internet. I have learned so much from here and used that information in my business and daily life. I really want to thank BiggerPockets for being a reliable, unbiased resource for me. Please don't sell out to advertising as you have many new students who are making their ranks up the real estate ladder!

Hello April,

I highly, highly, highly, (Did I say highly?) suggest you do research on a few property management companies (Unless you live in Colorado and are willing to take this on yourself). You can get referrals from people here on BiggerPockets.

It sounds like you will have to spend money to get these units in rentable condition. If you don't have the money, maybe you could sell one unit to fix up the rest. Inheriting a bunch of property without a property management strategy in place can be stressful, but it's doable. As far as the tenant who abandoned the apartment, normally you have to post a sign of abandonment before taking possession as well as a notice to pay rent if they hadn't paid rent in 2 months. You might want to work something out with the tenant so they don't take you to court. I'm not sure how valuable their stuff was, but you may want to try to approach it that way, before it gets messy. I'm not 100% sure of the laws in Colorado, but from my experience in California, this would be the best way to approach this situation.

Does the single mom have a good job that pays her $6,000 a month? Having a kid and paying that kind of rent would be extremely hard otherwise.

I don't think you should go with your gut on this one and do background checks to make sure they can pay what they say they can pay.

Choose what is best for you at the end of the day. You have all of the control in this.

Hello @Chris Yeakel! I was in a pretty similar position as you are when I started. Parents involved in real estate, browsing bigger pockets..

Contrary to what other more risk-averse investors might tell you, I think you should start with a 4 unit. I suggest a 4 unit because they are much easier to sell and buy as a first-timer. You can use conventional and FHA loans to buy a 4 unit. Because of that you have 20 times more potential buyers when you are ready to divest.

When I was starting out, I bought a house with 4 rooms near a college (Didn't have a wife so this was an option to me) and rented out the other rooms to college students. They paid for my mortgage and I made money living there for 3 years.

A 10 unit is immensely harder to purchase your first go around. Commercial lenders like to lend on experience and relationship. Most commercial lenders won't touch your loan unless you have 50% to put down if this is your first property. If you have partners that can help out with the experience part, then you can get around this. But honestly, if you are going to do 10 units, you might as well go for 16+ because that will require there to be an on-site property manager. You could be the on-site property manager, live for free and get paid to learn about real estate management.