Do you have the reserves for a new foundation, roof or HVAC system the second or third month of ownership? 

Hey, yeah $10K sounds rough, but with an old building and a flat roof, high premiums aren’t too surprising.

Many are performing the subcontracted labor because they lack the means to provide those essential requirements, particularly with roofing.3.

Big ticket items for deeper review by GC: roof, windows, AC, foundation, plumbing, electrical and more..2.

Property is I good shape no foundation or roof issues.

Put them on Craigslist as baby pandas, free to good home…They look pretty cute on someone else’s roof. :-)

If cashflow is tight in CA, exploring out-of-state makes sense — but pick markets you or a trusted team can manage.5) Concrete 6–12 month action planMonth 0–1: Pull credit, calculate budget, get pre-qualified with 2 lenders (one local CA lender and one that does out-of-state owner-occupied multifamily).Month 1–3: Save for down payment + 1–3 months reserves; get lender checklist and income/docs ready; attend a homebuyer counseling class if required by assistance programs.Month 2–6: Run targeted market research (3–5 neighborhoods), look at comps, estimate rents using comparable listings, and run pro forma spreadsheets (I can help with this).Month 4–9: Make offers on well-scoped deals; get inspections (sewer, roof, HVAC) and build contingencies.

The edge is simple math and control: more doors per roof, easier to nudge NOI with small value adds, and multiple exits if one unit turns.

Do your calculations include CapEx expenses (roof, appliances, flooring, etc.)?

Builders often will put on cheap 3 tab roofs, vs a 30-40 year architectural shingle roof.Also way too many of the newer neighborhoods have HOAs and rental restrictions that prohibit or severly restrict rentals.