5 Red Flags to Look for When Buying a Multi-Family Property in CA

When done right, investing in multi-family properties can be a lucrative real estate investment. The shared features and proximity of the units can mean added savings for you as the owner and a higher monthly income from the time and investment into one real estate transaction. 

Read on as we explore five red flags to look for when buying a multi-family property in CA.

Adding Up

Sellers can be unrealistic about the value of a property. Some aren’t willing to budge, which will ultimately waste your valuable time, so move on if they state they won’t negotiate the price when it’s reasonable to do so. The facts on paper or presented to you verbally when compared to the realities about your investment need to come into complete alignment when you run your calculations to check for positive cash flow. If something isn’t adding up, this is one of the red flags to look for when buying a multi-family property in CA. 

Lingering

Suppose the property has been lingering on the market. In that case, this is a red flag to look for when buying a multi-family property in CA, letting you know that all previously interested buyers have discovered one problem or another, and you should keep looking.

Rental History

If the owner isn’t willing to show you the records, including occupancy rate history and year-to-year profits, this is a huge red flag when buying a multi-family property in CA. However, when it comes to investing your hard-earned dollars, if the current owner would prefer to throw guestimates out in the air, then you should walk away from the deal.

Location

Knowing your market pays in long-term value. You may have heard this before, but location, location, location. It’s impossible to overstate the importance of site when you’re investing in real estate. For example, if you aren’t comfortable walking the area, then you’ve spotted one of the red flags to look for when buying a multi-family property in CA. Now, suppose the neighborhood is in the early phase of revitalization; you’ve investigated upcoming city plans for improvements, such as parks, and you noticed other properties in various stages of rehab. In that case, you may be getting in early on a great deal at a great bargain. 

Condition

You shouldn’t invest in property because you get a good feeling. Instead, you need to watch for physical red flags with the structure when buying a multi-family property in CA. While everything may look great in the listing, there’s just no substitute for seeing the property in person, where it’s easy to spot telltale signs of water damage or other obvious issues, including a general appearance of disrepair. A professional investor like those at H&M Realty Group has a trained eye for what to look past, and what matters, so unless you’re highly experienced, it may be worth seeking help to assess your investments.

If you’re ready to buy and want to be sure you don’t miss any red flags when buying a multi-family property in CA, why not talk to the professional investors at H&M Realty Group. We’re happy to work with you each step of the way; our goal at H&M Realty Group is your success, helping you make educated decisions about your investment markets and the properties you add to your real estate portfolio. Let the professional investors at H&M Realty Group help you locate your next investment property. Feel free to ask the pros at H&M Realty Group about any concerns you have; we’ll stop and listen. And don’t forget to ask about our current inventory of the best multi-family properties available in CA. Contact H&M Realty Group today at 949-625-4533.

Joe

Broker/Realtor/Investor/Mentor (41 years experience) Specialties: Buyer's Agent, Listing Agent, Foreclosure, Short-Sale, Property Management, Landlord I'm a Full Time Real Estate Professional, house flipper and mentor to many of my clients. I am here to help you get top dollar for your home or get you the best price for a home that you are going to live in. I have over 40 years of real estate experience for you to draw on and actively list and sell over 20 homes a year. I have sold over 600+ homes in the last ten years alone. I am a very skillful negotiator and will work diligently to help you realize the best possible price when buying or selling your home. With my Exclusive Home Acquisition & Sales System, I can find the Right Home for You! I have access to homes no other Realtor will show you. I can show you how to save an average of $10,000.00 on the purchase price. We will find a home that fits your needs, in a neighborhood that suits your style. If you are selling your home then I can bring all the professionals to you. I always include professional photos in ALL my listings. I have contractors standing by to assist with those upgrades if needed. I can also quickly get you ALL CASH offers for your home if you desire. My marketing surpasses all other agents. It begins with extensive internet advertising to hundreds of websites throughout the world. I do direct mail marketing for you home and also knock on doors in your neighborhood when I am holding an open house. I hold you home open to expose it to as many buyers as possible. My Exclusive program is designed to sell your home for Top Dollar in Any market. I am an experienced flipper here in Orange County and therefore can offer you my over 40 years of real estate experience. The information is available to you at no charge! If you like what you see, please call me and setup Your Free Consultation.

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