All Forum Posts by: Paul DoCampo

Would any of you buy a Multifamily unit in neighborhood with no SFRs; a neighborhood lined up with MFU's up and down the street? Or do you just stay away because of the competition? 

I also understand that buying a rental in an area were the majority of the houses are owner occupied is ideal. However finding a MFU in SoCal, specifically the Inland Empire, in an area surrounded by owner occupier (SFR's) is hard to come by.

# southern California, Riverside, San Bernardino, IE, Multi family

ok thanks @Aaron Mazzrillo , I always appreciate your input 

thanks for the reply @Mark Freeman. You say that it probably cost them 600k to build it?  I'll analyze it at 750k and see if it cash flows. but at that price range I'm going to have to look for private funding or partners. 

thanks for the reply @Franklin Romine The asking price sounds looney or my offer ?. I assume you mean the  asking price which is pretty crazy, but this is so cal and people ask for crazy things. 

You mentioned the new 4-plexs go for 485k in a growing area of Visalia. This area unfortunately is hard to predict future growth. The city in general has grown well, specifically the north part with all the new developing , but not so much this specific area. These new 4 plexs are in an older part of town, in a cult de sac with only small MFU's built in the 70s, and in a lower-class area

correction : these units are two master bedrooms each and a 1/2 bath downstairs.

#Riverside, MFH, 2-4 small Multi-family, 

oh and this property is in the Inland Empire near San Bernardino. And fairly new same size SFRs in area are not even going for that price so I don't think my offer is too crazy

I forgot to mention a 20% down payment.

Im looking at this brand new 4 plex that is still bing built. They are asking for $819,000, I'm going to offer $450,000. Sounds ridiculous but $819,000 is a ridiculous price to try and cash flow at.

2 bed/1.5 bath. 1100 sq ft each unit. 2 car attached garage for each unit. All utilities are separately metered. In a working class b-c neighborhood. 

Rent- about 1399 (average rent of 2 bed in area is around 1100. Pro forma rent puts it at 1500).

 (possible extra income from adding laundry but this is not added to my analysis.)

-Expenses per month-

Trash-88 total

sewer- 56

Tax-468.83 (1.25% tax rate)

PM-569.60

Repairs/vacany/cap ex-839.4 (5% of Gross rent each)

Financed at 4.75%= about $426 cash flow a month per door. At the 50% rule that equals roughly $230 a month per door. 

Now there is probably a good chance that they will not accept my offer because thereis a brand new 4-plex exactly like this one built last year next doow ,and bought for $750,000 and $300,000 down payment. But I thought i would give it a shot.

What do you all think?

Hello Serena. 

Riverside, and most of the IE have much better prices than LA. You can find many home in that price range in the IE. 

If you do end up going towards the IE, Here is my agent's number: 951-751-5504. His name is Michael Nugent. He is great agent. I have not worked with him in buying investment property yet, however i assume he is investor friendly (or at least knows what investment property is) because he is a fix and flipper, and has a buy and hold portfolio as well.

Hey Jim,

I just started attending the IEREIC. Im a newbie investor looking to buy and hold. Ill see you around at the meetings.

Paul