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.
Take a look at Dallas, Houston and San Antonio also look into
Thanks @Steven M. !
Cash flowing duplex in LA... BAM!
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.
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.
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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