Is it possible to get a decent apartment building with good cash flow on your first go around?
I've got a nice cash surplus, over 300.  I was thinking of going rental properties with a quadruplex, but the cash flow seems meager for the work.

Im in CA, currently not bringing in much income

Can i hit a home run on my first at bat
[{"id": "j1ty8ml", "text": "If you exclusively chase home runs you\u2019ll never get on base, but if you hit a few doubles you\u2019ll win", "replies": [{"id": "j1u1a3o", "text": "Which means what", "replies": [{"id": "j1u1l3e", "text": "Perfection is the enemy of progress. Take a swing, you'll learn far more, far faster than standing there looking for a home run.", "replies": [{"id": "j1u1vzc", "text": "So should i be looking for a multi family or an apartment building", "replies": [{"id": "j1u33xb", "text": "If this is a serious post, you should be discussing your lending options with a lender. What can you borrow? What do you qualify for? Personally I would tell you to find a duplex and start there. It was a great start for me and many I know of.", "replies": [{"id": "j1uje22", "text": "Second the duplex, especially if you live in the other half. They are usually cheaper then sfh because not everyone is cut out to be a landlord.", "replies": [], "depth": 6}], "depth": 5}, {"id": "j1v1u3u", "text": "If you're asking that question you should learn a bit more about real estate and what managing a property entails", "replies": [{"id": "j1v8p57", "text": "Can't i just hire someone", "replies": [{"id": "j1vazum", "text": "Nobody is going to manage a 4 plex for a decent rate. You can but it will evaporate any cash flow you're hoping for.", "replies": [{"id": "j1vfvkh", "text": "The 4plex im looking at in Cali is 1.8 mil the total rent would be 20k, the mortgage would be around 10 including taxes and fees.", "replies": [{"id": "j1vlihe", "text": "20,000 a month?? There's also expenses, it's not all income", "replies": [{"id": "j1vwlfm", "text": "Yeah im just wondering if there's enough for a manager there.  As long as i have some profit.  I really wanted to live in one of the units as well.  If i could do that and break even I'd be a happy camper.  Talking to loan officers right now.", "replies": [], "depth": 10}], "depth": 9}], "depth": 8}], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "j1uc8jp", "text": "Don\u2019t use baseball analogy questions if you don\u2019t want baseball analogy answers, that\u2019s your first real estate lesson.", "replies": [{"id": "j1ue5by", "text": "Lmao. Solid 10/10 post, wood rep.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "j1ui36k", "text": "With CA multi-family buildings and CA real estate in general, you\u2019ll make your money on appreciation, not cash flow. Factoring in high interest rates, high seller expectations, and buying a \u201chigh\u201d cash flow building out of the gate is very unlikely as a first time RE investor.", "replies": [], "depth": 1}, {"id": "j1uidcs", "text": "Time in the market is the key. Buy good product. These tight markets don\u2019t yield cap rates. If your cash flowing positive in many markets that\u2019s all you can hope for. (After debt service)", "replies": [{"id": "j22t9w3", "text": "How does a property yield cap rates?", "replies": [], "depth": 2}], "depth": 1}, {"id": "j1v0cql", "text": "You'll get better cap rates in other markets. But for your first go around you'll want the property close at hand!", "replies": [{"id": "j22t46y", "text": "What is a \"better\" cap rate?  Also residential properties of less than 5 units anr not valued using cap rates.", "replies": [{"id": "j233is2", "text": "Way I see it, cap rates are thin in prime markets. So, like I said, you can get \"better\" cap rates in secondary and tertiary markets. If you know where to look and can stomach the those markets and their nuances/increased risk. Pretty simple. \n\nDoesn't match with someone on their first go around like op stated, but, this is a part of the picture when op is commenting on seeing meger cashflow on their CA fourplex. \n\nReally what makes you say that? If it generates revenue, has NOI (or you and reasonable come to a NOI), and has an asking price / price a buyer is willing to pay, you can apply a cap rate to it.. \nCould be single family rental, duplex air BNB, tire shop no real property included, or a large company with multiple asset types you can use cap rates", "replies": [{"id": "j24s5eu", "text": "Cap rates are used to get to a value through a process called direct capitalization.  There are no sources of cap rate comps for residential properties of less than 5 units.  Those types of properties are valued by the more accurate sales comparison method.  If you divide NOI by an asking price all you are getting is how much the seller wants you to pay him for NOI.  $100,000 NOI and asking price of $1,000,000 means the seller wants $10 per dollar of NOI.  $10=$1/10%.  Pretty much a useless calculation.  If it is a  12% cap rate market then the value would be $833,333 so his asking price is out of line.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "j1zp77w", "text": "Don\u2019t buy on razor thin cap rates. Look for good amount of value-add potential. Get the capex portion built into loan. Look for spot where rent hasn\u2019t much increased, and could with quality upgrades. Cash flow is king, conservatively model. You can definitely locate a spot. However, I will say CA sucks (to find CF\u2019ing immediately) and it\u2019s a fucking nightmare for new development.", "replies": [], "depth": 1}, {"id": "j22tux8", "text": "Why are non commercial properties/investments discussed here?", "replies": [], "depth": 1}]