Purchase price: $425,000 Cash invested: $5,000 Helped my past client out of a difficult situation.

Only one was ever difficult. 

Unfortunately cap ex usually catches up to them and the appraised value rarely translates to a similar sale experience and all along the property has merely been a highly levered property.

In addition, in Florida there is a cap on property tax increases each year of about 3.5% increase... but big caveat...

The plan is notorious for minimum insurance and they were previously capped at $20M for larger commercial and HOA properties.

I'm not sure if the deals are just difficult at the end of 2024 in to 2025 or I'm just inexperienced.

diversification and cash flowSan Jose, CA has been very appreciation heavy... and i'm not opposed to keeping some property here, though the multi-family / commercial real estate has very low cap rates, and low growth from what i'm seeing.

There are good relations with the neighbor so this likely wouldn't be terribly difficult to pull off, but I haven't ever developed a property from scratch so I would definitely like the opportunity to partner with someone on this to help ensure the success but first I want to finish the smaller property to have sufficient funding available if it is needed.

However I like to run my numbers conservatively and account for cap ex, vacancy, maintenance reserves 10/5-7/5-7% respectively.

I cannot vouch for CA but they have been great for me in FL, which can be just as difficult as CA.