All Forum Posts by: Tim Ryan

I've been waiting for others to respond first. So I'll start. My advice is don't buy rental property in LA right now. They don't cash flow and we are at the height of the market. There is no doubt about that. Aren't we supposed to buy Low and sell high?? Right now would be buying high! I remember in 2006/2007 when many people said "but real estate always and only goes up". We all know where that got us... Be careful. Maybe put your dream on hold and swoop in on the foreclosures that will be on the market in next couple years...

Is this a multifamily? I guess a duplex? But it would be 1 bed 1 bath each and around 500 sq ft each.?

$340,000 per unit. Ok great so each unit will bring in rents of $3400 per month right? Word of advice - try not to compare an extremely over priced rental market with an even higher priced one and call it good. Sorry, I'm sounding kinda rude. Actually just trying to help. I went thru the same thing several years ago until I realized this, which is now my motto: Live where ever you want but Invest ONLY where it makes sense...

Cool. Lenders will typically ask for T12 P&L's Which means Trailing 12 months - so they can see the health of the property to determine if A. Will the lend on this And B. If yes, what rate and terms you'll get My advice is ask for all due diligence documents early and state in contract that the time clock starts once all documents are given to you. If not, they will drag it along and you and your lender will be very frustrated.

How many units?

Don't do it. I looked into it years ago and decided against. A friend of mine did too and I told him not to do it. He did it. He hated it. Apologized for not listening to me. He had nothing but hassle and in the end lost money. However, I'm sure there are people making money and would call me a fool. It just wasn't for us.

Jason Hirko well said I had duplexes that when I bought the tenants all had to cut their own. But it's a hassle to monitor so I pay now. They would get behind and the city would send me a letter to cut or they will bill me! But I have been raising rents so it evens out. If you have decent tenants than maybe they'll do it. Only think I'd say regarding Jason's idea is - good luck getting C tenants to do it.

My motto is "Live where you want to live, Invest ONLY where it makes sense". My advice for you is to pick a market (one market) and learn everything about the best locations in town. It's always about schools unless I'm Downtown areas. Then you'll need to travel there and get to know the real estate agents. Then, if they like you and believe you will close on deals (reason to like you) you can get both off-market and early deals...

Because too many people on BP are telling newbie investors that wholesaling is the best place to start "and generate quick cash so then you can flip with the money then save that and then buy large apts and then retire in a couple years" LOL

Christian Clark Palm Springs area but the smaller cities surrounding. Lancaster/Palmdale areas... But, you say "the smaller cash flow LA" actually it's Negative cash flow in LA. Anyone want to challenge me on this, bring it on, but play the Cashflow Game first then we'll talk.