Multi-Family Properties
- Thread starter elgringo
- Start date
NEW -> Contingent Buyer Assistance Program
I have not personally done this, primarily because I don't buy multi-family units. But I've known 2 people who bought 4-plex and lived in one & manage it themselves. Both of them ended up regretting the decision. I won't say that the experience will be negative for everyone, but you have to have the right personality to be a landlord in such close proximity, or be lucky enough to have all good tenants.
[youtube]http://www.youtube.com/watch?v=kyWhVUCXY1A[/youtube]
I wouldn't want to live in close proximity with tenants. It is best to keep it at a professional level. If you really want to do it, engage a mgmt company handle the leases and pretend you are not the owner. Otherwise, be prepared for all the little frequent requests from your 'beloved' neighbors.
davenlei
New member
That configuration exists in Gardena/Torrance in several neighborhoods. It seemed to work out fine for the friends who rented in those units but it did give easy access to 'complain' about things that needed fixing and I bet it would be an uncomfortable situation if the tenant does not pay the rent and you are evicting them.
momopi
Well-known member
elgringo said:
I have not personally done this, primarily because I don't buy multi-family units. But I've known 2 people who bought 4-plex and lived in one & manage it themselves. Both of them ended up regretting the decision. I won't say that the experience will be negative for everyone, but you have to have the right personality to be a landlord in such close proximity, or be lucky enough to have all good tenants.
[youtube]http://www.youtube.com/watch?v=kyWhVUCXY1A[/youtube]
Liar Loan
Well-known member
One big advantage to doing this is to obtain financing from FHA for only 3.5% down because you qualify for owner-occupied financing. If that does not appeal to you, there's probably not a very good reason to do it. Under the terms of FHA financing you can move after 365 days if living next to the tenants bothers you.
I've heard landlords that regretted living close to their tenants, but not everybody does. It really depends on your people skills and temperment as a property manager.
Many have used FHA financing to build their empire with a relatively small amount of money by refinancing to a conventional after the value goes up and then buying another 4-plex with FHA financing as an owner-occupant. Rinse and repeat.
I've heard landlords that regretted living close to their tenants, but not everybody does. It really depends on your people skills and temperment as a property manager.
Many have used FHA financing to build their empire with a relatively small amount of money by refinancing to a conventional after the value goes up and then buying another 4-plex with FHA financing as an owner-occupant. Rinse and repeat.
socal78
Well-known member
What I like to do is scope out the area by meeting renters within a complex I'm interested in. Just did this a couple weeks ago. (I'd like to buy a unit to rent out, not an entire building for living in.) Find a single parent, someone whose every buck counts, and strike up conversation. Make them feel like they can relate to you and want to help you. I don't lie but if they are unskilled in asking questions, I'll let them believe I am just like them i.e. mom on her own with 2 little boys who requires a good value in renting a condo. I try to zero in on renters in particular. Owners are too prideful for an honest discussion - keep walking. For the renters, I ask what their landlord is like. How are the neighbors. They tell me any problems going on with the HOA or community policies that are problematic for them. I just met a lady (single mom, renting, lived in this complex for years and years) who was extremely helpful. She gave me a tour. If there's an issue with fines for this, that, and the other, they'll tell you. Even things I never thought to ask. Pests - ditto. I'll ask if they have any beef with their landlord, etc. They are using this person's name today but may be using yours tomorrow. See what the general attitude is.
Leave your Benz at home. Take your oldest car or have someone drop you off. Try not to be pretentious. You want to get the good stuff out of them.
Leave your Benz at home. Take your oldest car or have someone drop you off. Try not to be pretentious. You want to get the good stuff out of them.