San Diego Multifamily Tips
Valuable Tips to Successful Income Property Investing

This information is to assist in your evaluation of the steps in becoming or continuing to be a successful income
property owner. It is a job, your life as an owner will be easier if you approach ownership from a business
perspective. Contact a real estate specialist (click here) for further assistance.

1.         Know Your Market
Start in a market you know. Whether you focus on fixer-uppers, foreclosures, duplexes to fourplexes , small or
large apartment buildings. Know the market value of properties, comparable rents and expenses.

2.        Compare Property Values And Rents
You will receive information regarding capitalization rates, grm and cash flow. Compare them to sales of nearby
properties. The same holds true for area rents.

3.        Where Are The Residents Coming From
Review leases and rental agreements. When was the last rent increase, will residents move due to rent increase?
If short term leases, were there concessions and how they could affect you. If rents are low is there rent control? It
is important to collect all security deposits at closing.

4.        Talk To A Tax Advisor
Know the tax situation going in. Do you qualify for or want to exchange (1031) your property, know the rules to
exchanging before you sell or buy.

5.        Know The Costs Going In
Review the books and records. Office information; check rent roll, rental/lease agreements and third party
contracts. Expenses; Check the utilities; water/sewer, electricity/ gas, trash removal. Call the utility companies for
annual expenses. Are there any increases expected in rates?

6.        R.E. Taxes And Insurance Costs
Verify the RE taxes. How much will they increase upon acquisition? Foreclosure situation; how much could they
decrease and are you prepared to approach the county seat for reduction. Make sure you have adequate
Insurance coverage of buildings and liability. The Lender will have minimum requirements and will need to be
included as a loss payee.

7.        Inspect The Physical Buildings
We addressed inspection of books and records in #5. You must inspect the buildings. You may want to hire a
professional inspector to examine the structure, electrical and plumbing systems. Check stucco and siding, roofs,
stairwells and all exterior areas. Inspect the interior of every unit. Are the residents happy, do they have
maintenance requests that are not being met. Differentiate between a resident looking for an angle and valid
concerns. What condition are the appliances, floor coverings and window coverings.

8.        Residents Are Customers
The residents occupying your rentals are your customers. Treat them that way and they will help attract new
residents. If you like the residents you have you most likely will find their family and friends to meet your building
standards. Use a professional background investigation company to run and review the applications of potential
new residents.

I hope these tips are useful for you and answer some of the general questions that face all of us when venturing
into the income property business. There is such great potential at this time for income properties. Good luck with
your income property investing.

If you would like some assistance from a Multi-Family expert (click here) or call the office 760-690-4400
Prestige Properties & Finance, a Real Estate & Mortgage Broker
2658 Del Mar Heights Road, Suite 207, Del Mar, CA 92014
Ph. 858-484-3446 / 619-568-3800 / 760-690-4400 :: Fax 858-484-3577
Licensed by the California Dept. of Real Estate. License #01153458
An equal opportunity Real Estate & Finance Company. All information deemed reliable but not guaranteed.
San Diego Multi-Family & Apartment Real Estate
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Multifamily Buyer Tips
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