All Forum Posts by: Shiva Bhaskar

Looking forward to seeing everyone on Tuesday! 

 Sadly, this is very common. If there is a good offer in, in escrow etc, they just won't respond.

 I am in LA, and emailed a commercial broker offering to treat him to lunch or a drink when he had time, as I saw he had recently sold some small multifamily properties in my target area, and let him know what else I had done locally as far as deals, and no response. Just keep going, maybe try to meet some of these folks outside of when you're looking for a deal, and form a relationship? Good luck! 

 I would take this money, and buy a single family or duplex in a decent area, in that city or elsewhere. Build experience, get better, and buy more. I think there are people who do well with D areas, but they are usually local to a city, and experienced. There are far better ways to make money here. However, the first step is taking action and figure out what is available, and it sounds like you're doing that, so keep digging! You will get there. 

Hey Zach, you may want to check out the Out of State Multifamily investing meetups (sounds like you may know of already), but there is one in Pasadena while you're here. I was at an even with a bunch of the chapters today in Long Beach and it was great. I'm sure you'll meet some good folks. Here is a link: https://www.meetup.com/Out-of-State-Multifamily-Apartment-Investors-Meetup/events/gpmcxqyzhblb/

This is the sort of thing I often wrestle with - appreciation vs. cash flow. I like the Midwest for cash flow (already investing there), but as an LA native, I do know which areas are growing and like their long term potential. If you're going to live in one unit, this could be a good idea, because life is short, and living somewhere where you are happy is important. I am a huge fan of San Diego myself. 

Also, SD is enjoying strong growth (though perhaps overheated now) and jobs coming in, so holding for the long run in likely to work out well (though no guarantees). Long term appreciation is a builder of wealth - and makes it easier to trade up into a bigger asset, through the 1031 exchange.

 It is, of course, speculative in some sense, but if we're being honest, SD is far likely to be doing well in 20 years than many of the Rust Belt markets where there is population loss, or stagnant growth at best, despite their strong cash flow. There's a reason people take lower cash flow in NYC or most of California (the major metropolitan areas anyways)- these markets are likely to be strong in in the long run. Make sure you have enough reserves, but assuming you do, not a bad idea at all. 

Another alternative is to look into markets where cash flow is substantially lower than the Midwest (and not great, but better than in SD I'd bet), but the population growth is strong and so appreciation is likely to be solid. I'm talking most of Texas and Florida, Atlanta, most of Arizona, Vegas etc. 

I love this. Wish the VA would publicize this more, because I (and many other landlords I am sure) would love to support veterans in some small way, and hopefully find a good tenant in the process. With that said, I'm glad you shared this with us Steve!

Not hard to find good tenants, even, I would say, in C areas. We've got quite a housing crisis here, and people find ways to make it work. I am aware of single family rentals in places like south LA, Compton, Watts etc where 7 and 8 family members (maybe more, who knows) are living in 3 bedroom houses. I suspect this happens in areas that are a little better also.

Advertise on Zillow, Trulia, and possibly Apartments.com. I'd avoid Craigslist because I think you don't need it, and the quality of tenant on there is lower. Screen everyone fully for credit and evictions. 

One thing I've done, on the advice of a mentor, is to offer a slightly lower rent, in exchange for a longer lease (24 or 36 months). You'd be surprised how many people agree to it, and given the high mortgages and lower cash flow here, it makes sense vs. turning over the unit more often, and having that month of vacancy where you pay mortgage and other costs. But yeah, even in what those of us in LA would think of as "the hood", you can find tenants. 

 I don't do this myself but I know of people who do. I think being local helps a lot, or finding someone who does these types of properties in a market you are interested in, has experience, and can be a trusted partner (i.e. you put up most capital and split profits). A tall order perhaps, definitely tricky, but I've seen it done. With enough networking, you can definitely find such folks, and it could be very profitable. 

I see you're in San Clemente, not sure if you were looking locally? Nothing very high crime in OC anymore, but parts of south LA, Compton, Watts etc are still fairly high crime but are seeing real growth and improvement that might make it worthwhile, as is of course city of San Bernardino and a number of other areas in the Inland Empire do offer this sort of thing. Not that cheap though, but if you want to manage more locally, that's an option. 

If you are ready to get started, have planned things out, and are comfortable working with your family, do it! I partnered with family in the past, and will do so again in the future if the deal make sense. Just have clear communication and clarify expectations, as with any investment you might consider. 

As others have noted, know what your advantages are and use them. I greatly admire people who pull themselves up by their own bootstraps with little help, but if you have a leg up like access to family capital, and know how to properly use it, why not? In the end, your parents will be very happy to see you succeed, esp . at such a young age - and you'll find a way to pay it forward to others hopefully. Best of luck. 

We're seeing things sit on the market for longer and more prices cuts here in Los Angeles. Realtor friends tell me this is more true for properties over $900 K or so, than for the stuff which is say $800K and under (those seem to be holding steady in price, definitely not appreciating the way they were in the recent past).