All Forum Posts by: Raju Balakrishnan

Leverage increases risk, but  even with best in the country appreciation--- around 10% or so---real estate does not make sense without leverage. Some low cost index funds will give you better passivity and better appreciation, with a little more volatility. Real estate is less passive, has added costs like commissions and closing costs. Having said that, with leverage or with other passive investors, real estate can be converted to a fast path to wealth, with a high degree of control. 

Absolutely! Here is another one. If the same property appreciates 10% an year what is your annualized return? On the very first year 25%, second year: 37%, third year 63%....  After that fifth year it is infinite (not completely true considering all factors, but approximately).

Informative and concise. Bay area C classes (where I live) have A class cap rates though!

While Sacramento has been a great market in the past, the rate of appreciation came down in last 1-1.5 years (https://www.multihousingnews.com/post/sacramento-multifamily-report-spring-2019/). I would check where it is going as well, perhaps more important that where it is now. 

Hi I am looking for a property manager for short term rental in San Jose, CA as well. Anyone knows a good one? @Mike V. Do you still manager vacation rentals?

@Maria D'Aura Immediate cash flow means outside CA probably. Here is a  stat for for best multi-family locations across the country for 2020: https://www.realwealthnetwork.com/learn/best-places-to-buy-rental-property/ . Singles may vary but somewhat correlated. May be will give you some new location ideas. Good luck with your search!

Check this link: https://www.biggerpockets.com/forums/12/topics/727375-legalzoom-vs-local-attorney-to-form-llc

Super awesome information! Thank you.

Look for Fannie Mae or Freddie Mac multi family apartment. You may look at the web page or talk to a lender or rep to understand their basic underwriting criterion on DCR, Net assets, down etc. There is no pre-approval. Many loan agents will be grad to take a look at the property and let you know.

Aquire my first multifamily