Hello Sean, It can be very difficult to monitor lawn care and snow removal at a duplex when the tenants are responsible for it, typically landlords provide it + water and the rental rate can reflect that.

If you 1031, isn't the cap gains issue out of the picture?

Property needs work and tenants are difficult to work with.

And then take those profits to some day buy a multi unit complexBit even then seeing cap rates of even 20% just seem like so little money for so much bother But I guess we each pick our own poison lol

So this crossed my path - a brick 6 unit multifamily in NW Ohio that the current owner wants to sell at 9% cap rate ($220k).

If you’re looking to create a group to pool money and then buy deals, that would be more difficult then if you just wanted to have a group to meet up and discuss REI

.$1,350.00MONTHLY INCOME$1,073.48MONTHLY EXPENSES$276.52MONTHLY CASHFLOW7.51%PRO FORMA CAP$11,270.00NOI$34,000.00TOTAL CASH NEEDED9.76%CASH ON CASH ROI7.51%PURCHASE CAP RATE

Whereas before finding 12-cap properties was easy, the same properties are now 7-8 cap.

I have nailed down a 63 unit mobile home park with excellent cap rate to purchase and have a letter of intent with the owner with a purchase price of $750,000.  

State taxes should have a minimal effect on evaluation if you live in CA (excluding property tax) because my understanding of how the income would be taxed is (state income was generated in taxes first if it is a higher rate than CA no further tax, if it is lower rate CA takes what you paid the other state into account and taxes the rest of the way up to their normal rate)  Hopefully that made a bit of sense it is difficult to explain in text format.