Purchasing multi-family units are excellent investment choices (in my opinion , the best right now), particularly new constuction as they come with builder warranties (little or no maintenance costs for 1-2 years), they will have greater future appreciation (compared with older units), and they will be easier to sell when the market turns to an upswing.As others have mentioned, due your homework (due diligence) and most importantly, run the numbers to make sure the deal makes sense.

This interest rate is adjusted annually, based on market indices approved by FHA, and thus may increase or decrease over the term of the loan.

Comply with health and saftey codes except where you or guests cause the violation.Now each time it does go out, the maintenance guy is here to fix it within an hour, for which I am greatfull (being in NYC without heat in the middle of winter really sucks).

MY LOC is backed by my good name and financial statements submitted a minimum of annually as well as my experience with the bank.They do have paperwork, previously signed, giving them my personal guarantee, rights to receivables, assignment of rents, first born male child, and right to my body parts upon passing.

I would raise their rent some each year regardless but would always go back and run the numbers (inflation, mortgage note, water bill, taxes, security light, maintenance, etc.) and make sure the numbers work to positive cash flow.the last thing you want to do is to not raise the rent for 3 years and then get a bump up on your water bill or taxes and then have to raise the rent all in one shot.easier to do it gradually over the years keeping pace with inflation and expenses.Brad McLeod

I wanted everyone to know that we'll be taking the site down for maintenance tonight at 11pm PST.

The rule of thumb is that expenses (vacancies, insurance, taxes, maintenance, property management, etc.) will eat up about 50% of the rent.

That means that a starter vacation rental property in Newport Beach that rents for $2,500 will gross $55,000 annually while a non-vacation rental will gross $30,000.Please note that I said gross, and that does not imply cash flow.

It has had no vacancy and repair & maintenance has been about $250 total.

So, once again, assuming that the average price for commercial property in your area is $100 per square foot, then using the above goal, you don’t want to pay any more than $60 per square foot, and you would reduce that amount by any repair costs or deferred maintenance costs.Cash flow investors calculate what they are willing to pay expressed as the percentage of the rents in terms of the purchase price.