Quote from @Carlos Ptriawan: Quote from @Chris Huang: Maybe so but SF is so expensive for a beginner though.  5+ Unit Multifamily can be tough right now.

All the trade websites say that in the end they're only a tiny percentage more expensive than regular concrete block because the labor costs go way down.    

Purchase price: $61,000 Cash invested: $60,000 Sale price: $191,000 The biggest expense of this property was the nine 20 yard dumpsters, yes nine!

So if you buy a $100,000 property at a 5 cap you in theory should be making 5%, after all expenses, on an all cash purchase.

Let's break down the pros and cons of each approach:Forming an LLC in the State Where the Property is Located:Pros:Compliance with Local Laws: Establishing an LLC in the state where the property is situated ensures compliance with local regulations and laws specific to that jurisdiction.Legal Clarity: It provides clear legal jurisdiction and may simplify any legal proceedings related to the property in that state.Perception: Operating with a local LLC may give tenants and local authorities confidence in your commitment to the community.Cons:Additional Costs: Setting up and maintaining an LLC in another state means incurring additional registration fees, taxes, and possibly hiring local legal counsel.Administrative Burden: Managing multiple LLCs across different states adds complexity to your administrative workload, including extra paperwork and compliance requirements.Tax Implications: You may face tax obligations in both the state where the property is located and your home state, potentially leading to double taxation or complexities in tax filings.Managing Through Home State LLC:Pros:Simplified Management: Handling all properties under a single LLC streamlines administrative tasks, reducing paperwork and simplifying tax filings.Cost Savings: Avoiding the need to establish multiple LLCs in different states saves on registration fees, legal expenses, and ongoing maintenance costs.Consistency: Uniformity in management practices and legal structures may contribute to efficiency and ease of operation across your real estate portfolio.Cons:Legal Exposure: Operating out-of-state properties under a home state LLC may expose your personal assets to the laws and liabilities of the other state, potentially diminishing the liability protection the LLC offers.Compliance Challenges: You'll need to ensure your home state LLC meets the legal requirements for conducting business in other states, which could involve additional filings and fees.Perception and Credibility: Some tenants or local stakeholders may prefer dealing with a landlord who has a local presence, which could impact your reputation or relationships in the community.Ultimately, the decision depends on your specific circumstances, risk tolerance, and long-term goals.

One way or another, however, the investors must work to pay down loans, increase rents and decrease expenses wherever possible.

For example, if they really want $500k for a property, maybe offer a purchase price of $500k but a lower down payment and interest rate (and a longer-term).

Maybe Greg only processes 4-5 applications a year and doesn't mind the expense.

You have a balloon coming anyways, so all you're buying is a few months of lower interest and in the meantime you're burning days trying to figure out how to pay for the rehab. 

I just purchased a 4-plex for 550,000$ cash flow after all expenses is 700$/month.