All Forum Posts by: Victor Zeytin

I'd love to join as well.

My family owns a largish parcel of land of about 2.5acres on the 405fwy in Fountain Valley which might present an opportunity for me. I'm doing some preliminary research for usage cases for the parcel. I was thinking a self storage type of business would be great. It's in an industrial area. It would need to be a ground up development however and I personally haven't done that before. How does one go about researching the best usage cases for a parcel like this? Are there resources for an average Joe in figuring out how to maximize the revenue for an opportunity like this?

Thanks in advance

Well, this is a big change from SoCal where I'm based out of where even smaller properties don't meet the 1% rule.

I see the potential in updating rents but work would definitely need to be put into the property. I'm weary of doing remodeling when I'm clear across the country and without a solid property management company.

Hi everyone,
I'm in discussions with a landlord in Durham for an off market sale. The property is a multi-family of approximately 17 units. I'm wondering what the general range is for properties in western Durham. The rents seem to be pretty low for this property and it doesn't meet the 1% rule. It's more like 0.7 or so. Competing properties which are closeby rent for the low 1000s albeit with updated interiors. To bring it up to that range, there would need to be some work done for sure. The property does happen to be on close to an acre of land however so potentially adding more units is a possibility I could explore. What do you guys think?

I'd love to be a part of this group as well. I've been itching to get into my first small multifamily in SoCal.

Thanks for the reply @George Paquette Can you let me know a little bit more about the rent cap? Is there somewhere I could look at to get an idea of what that is?

Hi everyone,

We're looking at a property in Catalina island. The property is residential multifamily and I was wondering if anyone has some insight into the local market there. I've lived in SoCal for 37 years and have actually never visited. I understand there's a housing shortage over there (also water shortage). What is the multifamily market like in Avalon? Are there any regulations or barriers to entry we should be aware of ?

Thank you!

Hi everybody,

I'm an entrepreneur that's been trying to get into multi-family real estate in SoCal for about a year now.

The opportunity has presented itself for me to get into a project that'll yield about 30 units with 4 low income in the SF Valley. We've been negotiating with the landlord for the past month and he's given us a deadline until tomorrow to commit. The land costs for the project is going to be $60k p/unit. I was wondering what this compares with other areas in SoCal. Is it a decent deal or not? I know things are all relative. Land costs on the west side of L.A. can easily be $100k or more but we're shooting for middle income families.

I'd love to get your opinions.

Scott, thank you for chiming in.

I agree that the Southern California market has seen a huge amount of new multi-family units hit the market or are in the pipeline. There still seems to be demand for them though. 

I have also been struggling with these questions. Will the market see a downturn now? Are there too many units hitting the market which will negatively effect rents? How will the imminent interest rate increases impact the multi-family market and real estate in general? 

I had an opportunity to invest in some apartment buildings in 2011 and I thought that, at the time, the ~6% cap rates that were being offered was too low... Big mistake. I missed the big upswing in property values. I have a gut feeling that we're at the peak but I thought the same in 2011.

I'm in the position of having some cash on hand and I'm looking to diversify. I have a relatively successful business that's generating income that needs to be invested. I can't quit my day job to go fully into real estate which handicaps things for me a bit. 

Hi everyone. This is my first post here and I've been spending the day reading through the posts.

I'm a small business owner that's looking to invest in MF in SoCal. As many of you know, SoCal is an extremely competitive (overheated?) market with very low cap rates.

I've placed offers on no less than 3 properties so far with a partner in the San Fernando Valley area with the goal of developing MF properties. My partner has developed a 20 unit beautiful low-rise in the valley. We've missed out on all so far by being outbid by other investors. Other properties we've missed out on because they were sold right before we go to them. It's a bit dispiriting when you have cash on hand and are looking for a reasonable return for your money and can't find anything. We're shooting for a few 7-8% cap rate after development of a property which I don't think is un-reasonable. The target property is a 20-35 unit 2-3 story low rise property. Something that's neat and manageable.

One of the issues I think is that I can't commit a huge amount of time to this because it would take away from my current (non-related) business.

What would you guys recommend for investors in my situation? I'm sure there are a lot of people on the same boat and I'd love to hear what you have to say.