Once you’re sold on the idea of buying an apartment building, the next question is: “What to buy?” One of the important principles to keep in mind is that it’s usually better to buy more units than fewer for a given amount of money. To see why, let’s compare two different deals on the same … Continue reading “Why more units are better than fewer”
Category: What to buy
OK, I want to buy a building. What do I do first?
Call me. J/k. Sort of. The first thing you need to do is take stock of your current position. Here is what you need to get started: A decent credit score. FHA will loan down to a 580 score, but ideally you’d be north of 700. A stable work history. The ideal loan applicant would … Continue reading “OK, I want to buy a building. What do I do first?”
Why I write this blog
You might be wondering: Why does this guy spend so much time writing about apartment buildings? I think the financial crisis of the past few years has changed something fundamental about the relationship between young people and real estate, and I want to try to both explain that change, and help shape it and move … Continue reading “Why I write this blog”
Silver Lake Income Properties In High Demand
We’ve just completed a review of the data for sales of 2-4 unit income properties in Silver Lake over the past six months. For more on the methodology, please see below. Meanwhile, here are the headline numbers: Median estimated gross rent multiple: 12.7x annual rents Median estimated CAP rate: 5.5% Median sale price as % … Continue reading “Silver Lake Income Properties In High Demand”
Imagine Your Building Burned to the Ground
When I look at a new building to buy, I almost always start by imagining it burned to the ground. Am I some kind of psycho? No, I’m not (at, least, not that I know of). I imagine my building in ruins because it helps me focus on the most important aspect of any property: … Continue reading “Imagine Your Building Burned to the Ground”