The easiest way to make money with apartment buildings

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Follow this recipe:

1. Choose an area in Los Angeles which is currently marginal but showing strong signs of improving

2. Find a building in reasonable condition

3. Purchase it at a price which is less than or equal to 11x the total annual rent

4. Keep your leverage reasonable – like 70% LTV maximum

5. Do a half-decent job managing the property, raising the rents every year

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