Now that I am investing for less risk, less aggravation, and increased capital gain potential, I use the 1% rule for Class A residential and the 1.5% rule for Class B.

Kids these days need as much love and attention from their parents than before.

When purchasing a MFH to B&H, to me there are several main aspects:-- Getting property in rentable shape/rehab-- Tenant Selection & Management-- Financial ManagementAs I just completed purchasing a 6 family 2 days ago that is already rented and needs little work, my attention is focused on Financial Management.

An instant $200 gain in cash flow.

I expect prices to be relatively flat for the next couple of years, but to hold the gains we are seeing today.

Don't get overly concerned about public liability but you do need to be aware, keep properties in good and safe condition, know the rules and conduct your business with attention to details and you should be fine and carry insurance....And I believe Texas has an LLC that limits liability to a subject property safeguarding other business assets, which is unique, I suggest you simply form your business in Texas.

OTH, if someone doesn't pay miuch attention to their business, they operate in a care free manner, are often negligent in other aspects of life, then doing all you can do to hide out might be a good way to go.This public liability razz is way over hiped IMO and insurance is your best solution.Hey, not implying our OP is paranoid, I know he has good reason to be concerned from other posts, but don't take legal advice from a CPA and don't ask your attorney to set up your accounting systems.

If not with increased management fee you are looking closer to 60% to 65% cost and not 50% annually.Tenants not directly billed bu the water authority use about 30 to 35% more water monthly and do not report water leaks.If the tenants are not paying then you will have months of lost rent,damage to the units,and reconditioning costs.You need to pay close attention to the EXISTING tenant base going in.Run your own checks on them.The existing landlord might have just filled the building up to dump off crap tenants on someone else.The fact that this property has changed hands so frequently leads me to believe it has serious problems.People get think they get a deal and then want to jump off the burning ship quick before going down.Check title history chain and see if you can locate previous owners,their attorney etc. on documents.You can also look up if a previous corp bought it and the controlling officers.

The knowledge and credibility you gain will be very helpful in obtaining investor clients.

Be driven to focus your attention on deal making activities and ignore the rest.