All Forum Posts by: Stephen Masek

Perhaps it was just a slip, but using the word "spend" instead of the word "invest" is a mistake.  You do not need to only look in your own geographic area.   If you do not want to manage the property yourself, you will be hiring a manager. As with anything else, quality varies.  One thing is certain, there is no such thing as "armchair investing."  You still need to manage the manger, and otherwise pay attention to each property.  It does not have to be much time and effort, but it is time well spent.  You also need reserves to pay for the expected (e.g. periodic roof replacement), and the unexpected or unscheduled.            

I am having breakfast tomorrow with a client who does large apartment deals to see if there are opportunities to invest in one or mote of their deals. We (the Consulting company Rima and I own) have other clients, such as one doing a 40 story tower, and others building new apartments and converting offices to apartments.  Of course, we'd have to be very, very  careful as relatively small participant in any large deal.

Mr. Hoyt, I do not understand how that would work.  My company inspects apartments, and we see tenants packed in as tightly as is possible.  How could rents rise?  What about the radical leftists running the state government, with all kinds of new taxes and regulations?  It seems like well past time to be selling California apartments. 

If you did not have asbestos and lead surveys, that will be needed and will affect the rebuild or demolition costs.   

The Trump Administration tax cuts may keep it going longer than people might think.   We inspect apartments, and they are crammed with as many as is possible, more in many cases, with extended families in singles (no bedroom), two families in two bedroom units, etc.

The requirement to do earthquake retrofits on 13,000 buildings in LA may spread to other cities.  It is certainly a good idea.  Many owners, leveraged up to and beyond their eyeballs, will have to sell.     

You also need a good environmental consultant to perform the asbestos and lead surveys before work is done on the building.  It is a one-time expenditure.

Thank you-all for this interesting thread.  Flipping mobil homes is something I'd never considered, but could clearly do.   I'll second Nathan's questions.

Mr. McAlee, Congratulations on finding that value-add apartment building! 

We sold all but two houses before the big crash, as bizarre increases in value were occurring, and rents were going down. 

Yep, we own houses in Austin which have appreciated, something hard to get in Texas.  Our two houses in Atlanta have appreciated sharply.

We are thinking of joining an apartment association(s) in a city/cities we are considering to meet potential off-market sellers. 

We're probably too poor to build a new apartment in California, but new apartment construction here is red hot.  At least the environmental consulting company we own (Masek Consulting Services, Inc., now in our 26th year) is getting quite a bit of work at properties where old buildings will be replaced by new apartments.    

We have 14 rental houses worth a total of $2,000,000 owned outright and $200,000 in cash.  We are considering selling all of them and buying or building an apartment building this year.  Many have appreciated significantly, so return on our original investment is good, but return on current value is not so good. 

Where are you finding good apartment deals?  Las Vegas?   Perhaps I should ask if you are finding good apartment deals, as we've not seen any.