Fresno, Ca deal analysis

[Kin Leung]

Hi all, I've been mostly browsing and would like some thoughts on investing in the Fresno, CA area. I came across a 6 plex for $275,000. The listing shows a rental income of $36,900, expense of $14,760. So the supposed net income is $22,140 annually. When I asked the agent what the expenses consisted of, he said gardener, maintenance/repair, electric, water. 

In terms of analyzing this deal, what else should I consider if my plan is to put 20% and have a property manager to manage it? Also, this will be my first time looking at a multi-unit property, so would welcome any feedback. Thanks everyone!

[Chris Williams]

@Kin Leung, don't listen to naysayers. Listen to those who are actually there doing business. Fresno continues to be rated one of the best real estate markets in the nation and our appreciation continues to outpace the national average and the California average as a whole. We've had good job growth and GDP growth over the last few years which has really helped to stabilize the area. Every landlord and property manager I know can't fill their vacant units fast enough, and most people have a very long waiting list of potential tenants.

Most of Fresno's "nasty" areas (if that's how you want to label the people who live there) are pretty consentrated in specific areas. Which means if you know where those areas are, it's pretty easy to stay away. Fresno as a whole is a pretty big middle class city with a little over a million people within a 30-45 minute drive.

The key to successful landlording in any area or neighborhood is tenant screening. Every tenant should be fully vetted like YOUR life depends on it lol. But if you are out of the area, that is where a really good property management company comes in handy.