Re: one bedroom 4-plex - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on January 13, 2002 at 24:22:49:
I suspect that the answer to this question is geographically determined. Here in Oakland, CA and in San Francisco and surrounding areas, there is very strong demand for all kinds of residential rental units, including one-bedrooms. You need to ask other investors and real estate agents and property managers in your area. You might also want to puruse the real estate rental advertisements in newspapers in the library. Look to see how long the one-bedroom for rent ads stay in compared to the other size bedrooms.
Never rely on one or two opinions. Talk to a lot of people. Try to find the ones who really know what they are talking about. Remember: 1/3 of what you hear from people is false.
Study the property from the perspective of price vs rents. The expenses, the return on investment. The absolute amount of cash flow. The amount of management work required. Look at the condition. Study the area around it. Find out what else is available for rent in the area, maybe by posing as a potential renter. Try to find out if there are long-term stable renters who will live in this location and this size property.
No money down did you say? That is certainly a promising start. But, don’t take on anything if it is not a good investment. That is the first rule of real estate investing. You never have to buy. You want to buy only a good investment.
Good InvestingRon Starr**