All Forum Posts by: Sorab G.

@matt shamus

I hear ya.. i have a PM managing the property (and all stockton properties).. 

I do have month to month leases

I wouldn't want to be there at night.. and i'm not

My turnover is pretty low.. maybe 1 vacancy a year, mostly people have been there a long tie.

Yes, the deposits and more are eaten up every turn over

I'm still >10% coc yearly.. and that will only increase as rents rise

My strategy is to hold for the long term, that's where i'll see the better returns.

This strategy works, it just requires tougher skin and the ability to stay calm and thoughtful of the vision rather than the immediate issues.

If the units are in good condition, you can get 700, mine are in decent condition and i'm getting 675.  

Because of the area, i wouldn't recommending doing large rehabs on these units.. these types of tenants don't really take care of the units.  The cost/benefit to get to 700 may not make sense.

For example, to rehab a unit and get it looking nice, it may take 4-6k, is it worth the extra 25 bucks a month to be getting the highest rent on the block?

Also, it seems that rents are going up in the area, will be interesting to see where things end up next year.  We may be hitting closer to 750-775 for the nicer units but only time will tell.

I own a triplexd on the next street over.. these suckers make great money! and then you spend it all on maintenance issues, tenant turn over.  Don't get me wrong, its still worth it in the long run, but expect your first couple years worth of cash flow to go into the rehab process. 

Then you wonder to yourself, is that worth it?  

Why are you pointing these things out?

Because in the long run, rents will go up, the property will be in better shape and the cash flow will pay off.

Just be ready to deal with headaches, if that's not for you, these properties are not for you.

Take it from a guy that owns many of these.  Make sure you or your agent specifically speaks with each person living there and validates what they are paying.  If the seller gets it its called an Estoppel certificate, but many of these have been known to be forged.  For me its happend at least 3 times.

A list of maintenance issues fixed and outstanding issues to be fixed.

Tax information might give you some information but i doubt its based on any fact.

Get examples of how much all things cost, water bill, garbage. 

Reach out to the city to see if any inspections or code violations have been given.

Run the numbers.. these types of properties have more costs than SFH's or duplexes.

I buy multi-families in Stockton, the Cash on Cash returns can be higher than what others have listed above.  I rarely have trouble finding tenants and have everything running through property managers.  The deals are fewer now.. but they are there.

Just be proud of who you are and what your building for your family.  There will always be haters.  

I'm a slumlord and proud of it!

Hi, I live in the bay area and invest in multifamily properties in Stockton. Send me a message if you'd like to talk.

Carlos, 

I currently invest in Stockton and would love to be on your buyers list.

Thanks

Sorab

 Hah, so so true.

Hi Jordan,

I'm currently investing in and around the area.  Just bought a property in Stockton a few weeks ago.  I'm not a fix and flipper, but a buy and holder. 

Would be willing to talk shop.