All Forum Posts by: Charles Chang

I think you might be thinking of Prop 13 .

Once the new owners takes possession... the taxes won't be low anymore.

Let's say if I am willing to venture outside of California...are there regions close to California that you guys would recommend for multifamily?  Based on my research, the greater Phoenix area is not much better than Calif when it comes to the cap rate.

I would like to stay within a 2 hour flight distance if I would ever need to make a visit to take care of business being that I still have a day job and time will be a limited resource.

@Nabil Suleiman

 Thanks for the reassuring information on SoCal being a seller's market.  I will definitely get going on getting the houses in tip top shape and get them ready for the market.

I would like to keep my holdings in California in possible, but I am not seeing anything in Sacramento that makes it worthwhile of executing a 1031 exchange at the moment.

I will definitely do my due diligence and interview property managers along with verifying their references.

Since this will be my first multifamily investment, I probably will be conservative and used the cash flow generated to amass the capital needed for future investment. 

I have talked to an intermediary, but how do I make sure they are qualified? The firm has decent reviews on Yelp, but what else can I do in terms of research?

I have been reading a lot since joining the forum. Now I am finally ready to pull the trigger after getting over the biggest hurdle... convincing the wife.

So I currently hold 2 SFRs with no mortgage in San Gabriel Valley and Inland Empire region of SoCal. They combine for about 1.2 million in value but return only about $4000 per month in rent.  Obviously, the cap rate is very disappointing.  After doing many hours of reading and research on BiggerPockets, I have realized that I must make a major change in my investment strategy.  

So I have decided to put both SFRs on sale soon.  Unfortunately, I just found out that I must give my tenants 60 days notice to vacate the property since they have lived there longer than a year.  So it will take me a few more months before I can list my properties for sale.

I would like to get everyone's opinion on the following questions...

1.  What is the best time to put the SFRs in the market?

2.  I am mainly looking for the best cap rate.  Fresno seems to be pretty good.  Any other cities I should look into?

3.  How do I go about validating the effectiveness of a property manager?

4.  Should I pay for the multi-family in cash or buy multiple apartment buildings by leveraging the proceeds from the SFRs?

Looking forward to hear everyone's opinion! 

 I understand that I will definitely have to hire someone to manage the property if it is 350 miles away. How do you go about finding a property manager you can trust? 

How do you guys feel about mobile home parks? I have been reading up on them quite a bit. It seems that the general consensus out there is that this is the type of investment that has the least amount of hassle involved on a day to day basis.

@Andrew Johnson What are some of the possible unexpected incidents that may result from owning an investment property out of state? It's always better to learn from someone's experience rather than on your own.  Thanks again for your insight!