Posted by Billy on January 26, 2002 at 21:46:54:
Great follow up Ron. Al, if it makes money then go for it. I made a nothing down offer last week on a 4-plex w/1 bedroom units. It was accepted this past Thursday. The monthly cash flow is $240. Do your homework first though.
Good luck!
Billy
one bedroom 4-plex - Posted by al
Posted by al on January 10, 2002 at 23:38:22:
I am thinking of purchasing a 4 plex, all one bedroom units. It is a brick building with 4 one car garages. A few people are saying to stay away from one bedroom properties.
There is a bootleg unit in the basement which is were the $500 a month cashflow comes from. (No money down purchase.)
Am I paying to much if the cash flow comes from a bootleg unit?
Are One bedroom properties hard to sell?
Hard to rent?
Thanks for any advice,
Al
Re: one bedroom 4-plex - Posted by Pat Nolan
Posted by Pat Nolan on January 23, 2002 at 20:35:44:
I just bought a one bedroom 4-plex in Missouri. I worked out an extremely low down deal with the seller – less than $1000 on a $110,000 property. Rents here for similar units are average $325 and I expect to see moderate increases in the future. After all expenses the property throws $171 in cash flow.
They can be a good investment, but it all comes down to cash – If you don’t have it, a tax break won’t help much…
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:
Al------------
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**