@Leonardo Martinez you might get some specific San Francisco help here but the laws in your area are so specific you probably should get a lawyers advice.

Depends on the condition of the place

Hello all, I finally got around to having my LLCs set up through and attorney and it appears I have been left hanging here.Attorney initially opened 3 California LLCs as well as 1 Wyoming LLC. He suggested we do it th...

Conventional MortgageDSCR MortgageDSCR Renovation MortgageOther: $_____Purchase Budget: $_____Repair Budget: $_____Property Condition You are Willing to Work With:Turnkey < $3,000BRRRRR > $3,000BRRRR > $15,000Target Rent-to-Price Ratio: _____Target CAP Rate or ROI: _____Target Cash-on-Cash: _____Deed/Title: Your Name: required for FNMA, FHA & VA mortgagesLLC: required for most DSCR mortgagesTrustPartnershipOther Hello Michael, all great points.

Hire a lawyer in the county where the property is located.

Price range, area, condition, SFR/lot/teardown — whatever you’re focused on.Always interested in understanding what different investors are looking for in this market.

If this is a great tenant, who is conscientious with the property condition and they pay market rent, I'd tend to lean towards finding a way to make it work with the provisions you are comfortable with.

Property Condition & Amenities: it’s important to, “Maintain to the Neighborhood.”Key metrics for each Property Class:Class A Properties:Tenant Pool: Majority of FICO scores 680+, no convictions/evictions in last 7 years.Tenant Default: 0-5% probability of eviction or early lease termination.Section 8: Class A rents are too high and won’t be approved.Vacancies: 5-10%, depending on market conditions.Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Class B Properties:Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.Tenant Default: 5-10% probability of eviction or early lease termination.Vacancies: 10-15%, depending on market conditions.Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.Section 8: Class B rents are usually too high for the Section 8 program.Class C Properties:Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years.

Most investors aim for $200–$400/month after mortgage and operating expenses on small multis.Some will try to find the 1% rule, and in smaller, cheaper markets it’s possible to see $400–$600/month.At the end of the day, what matters most is comparing your deal to the norms in your market, the condition of the property, and whether the rents are already at or close to market, or if there's an opportunity for you to increase them. 

I’m curious how other buy-and-hold investors are handling CapEx on older duplexes and triplexes (1970s–1990s builds).Here in the Triad, a lot of these smaller multis still have:• old electrical panels• original plumbing• worn roofs• older HVAC systems• aging windowsWhen I underwrite, I’ve been using 10–12% CapEx depending on age and condition, but I’ve seen some investors say they go as high as 15% on heavy value-add.For those of you with long-term holds:What CapEx percentage has worked best for you in similar markets?