All Forum Posts by: Bill Manassero

Hey @Aaron Harrington!

I live in Mission Viejo also.  I'm doing buy 'n hold but with out-of-state properties.  I was sceptical to invest out of my area but now am loving it.  If you want to meet sometime for coffee or a bite to eat, just let me know.  Take care.

Zlantan (haha),

I would recommend duplexes-fourplexes to start. There are great deals in Indy. Plus you get 2-4 times the return you would on a SFR. I am an out-of-state investor but have a duplex and am closing on a 22-unit in Indy. There are great deals to be had in but make sure you educate yourself well (BP is great place to start), network at local REI meetings or meet-ups and find yourself a mentor. In that process, you can start to putting together your local "power team" (Commercial broker(s), attorney, CPA, Property Manager, contractors, etc.).

If I can be of any assistance just let me know.

Best of luck.

Jim,  Thanks for your comments/questions.

My plan is basically very simple, to just double the number of doors each year. Yes, I do have a monthly cash flow number that I need. This goal, however, far exceeds my basic goal. Since I am focused on apartment buildings, more doors is much easier than with SFR. As I near the final years, I will either be buying considerably larger apartment communities or multiple (2 or 3) complexes per year.

@Cosmo Lee  in the begining, I had trouble with the name thing, too.  First you type a @.  Then right after - no space - Type the first name (With a capital first letter), space, last name.  The name should automatically appear in that process.  When it does, click on it, and it should appear, highlighted in blue.

@Cosmo Lee Welcome!  I'm also another local RE investor here in OC (Mission Viejo).  I have experience with SFRs, duplexes and multifamily, all out-of-state, and some turn-key.  

Just let me know if I can be of any assistance.

@John Tilstra Sometimes it's a good idea to cast a wide net. When you get a lot of properties, you can do a quick analysis using the 50% rule (expenses are 50% of income) to narrow down. I have a simple Excel spreadsheet where I plug in purchase price, number of units, local CAP rate, income and mortgage pymt (if financed). From that I can get a number of quick key ratios (cash-on-cash, price per door, GRM, NOI, actual CAP rate, cash flow, debt coverage ratio and property value.) Of course it is rough but it helps sort and refine. From there, you can narrow down to your key properties, contact brokers for rent rolls and financials and then plug actual data into the BP Rental Property Calculator.

@Shweta Gupta.  Hi, I'm a fellow BPer from OC.  I would take up @Joe Homsup on a meet at Starbucks.  He is very knowledgeable and just a great guy.

Another market you might consider is the local mountains (Crestline, Big Bear, Arrowhead, etc.).  Lots of homes in the $125-250K.  Buy and hold is possible but the vacation rental can be more lucrative, just a bit trickier.  There are a number of So Cal BPers that are in that market.

I personally went out-of-state where $100K can buy you 5 homes.  There are a number of emerging markets that are great buy-n-hold rental markets, plus equity growth.  I am currently in Memphis, Atlanta and Indianapolis and looking at Ohio.  I'm closing in the next couple weeks on a 22-unit apartment in Indy that cost $350K!  Out-of-state investing requires the building-up of strong teams and carefully monitoring but once you work out the bugs the cash flow is steady and significant.

If I can be of assistance, just let me know.

Best of luck to you.

Excellent points @Richard F.

With out-of-state rentals, I have to rely very heavily on strong property managers -- especially for construction/handymen and that can be tricky and, sometimes, expensive.

@Douglas Skipworth

So, what is your plan to accomplish your goal?

I am building teams in each key market.  The teams consist of a core of strong legal, PM and brokers.  The core provides contractors and other extended team members. 

Specifically, (1) how are you finding your deals? Deals are coming primarily from my brokers but also through REI sites like BP, MLS, Loopnet, etc. (2) how are you funding your purchases?  Started with self-funding but with now, with increased units, will be syndicating. (3  How are you managing the properties?  Carefully screen PM companies.

@Deb 

@Deb JonesThanks for your comments.  Yes, the apartment is out-of-state.  I have a good team in Indy, where it is located.  I think multis are the only way I can achieve my goal.