Good Markets to Acquire Fourplexes?

7 Replies

Hi All,

I'm looking to acquire fourplexes and am wondering which cities people think have good opportunities right now. I am more interested in cash flow than appreciation. Ideally, the scenario would be 25% down, 30 year fixed loan, and at least a 15% cash-on-cash ROI.

I live in Los Angeles, and I do not think there are many good opportunities here to pick up a cash flowing fourplex. I've been looking in Phoenix, but there has been a lot of appreciation there in the past couple years, so it's been difficult to find properties at the right price there as well.

Any recommendations would be greatly appreciated.

Thanks,

Zach

Take a look at Dallas, Houston and San Antonio also look into 

milwaukee.

Cash flowing duplex in LA... BAM!

https://www.redfin.com/CA/Los-Angeles/4862-Westhav...

But seriously....

I'm all about 2-4 units in LA. There are areas you can cashflow in LA.

Zach...there are 4-plexes available in the DFW area. Availability is a bit of a mix between 1970's apartment style duplexes and older historic homes that have been converted to 4-plexes. They are all listed on the MLS, so I am not really going to add a lot of value to your search. Rentometer is extremely accurate for what it has access to, but be aware that a majority of DFW rentals are not MLS listings.

If you find something you're interested in and want detail on the area, schools &/or neighborhood, feel free to PM me.

Good luck!
Hattie

@Zach Winner ,

4-plexes in DFW are usually overpriced. Worse yet, they are supposed to be valued as SFR based on comps rather than on income. If you try to derive a value of a 4-plex based on its income your will arrive to 50% of the asking price. Yet, the sellers ask 4-5% cap rate for a class C 1970s building.

Also, since you're in CA you will have to rely on a PM to manage your 4-plex and that will take a good chunk of money from your bottom line.

Nick

Make a search in Google for the list of 4-plex and try to get all the details related to it. 
Try 4plex of Houston, San Antonio, Texas as well.

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