If you want to be a successful investor learn to do due diligence

Nothing wrong with making a mistake, you learn things that sting you enough to learn some more so you are more successful next time.  But if you are not progressing in a foward manner, you do need to review why.

Re Freshwater – Purchasing jointly with someone else can affect your serviceability because you might both be considered liable for the entire loan rather than just half.  Kind of messes up plans for subsequent purchases.

The others have issues with proximity to capital cities.

Those that haven't had much growth… might be worth talking to Paul Dobson about making the bad become good through rent to buy.

Regardless of the Investment Team you form always understand the deal.

Performing due diligence can make the difference between starting a career in investing, or watching your savings fall into a money pit. If you know what to look out for, your new apartment complex can generate a steady stream of income that will help secure your retirement. However, there are many caveats that the buyer must be aware of (and that the seller is not always required to disclose) to make sure they don't make any rookie mistakes. By knowing what to look for and avoid, you can feel like an expert when buying your first apartment complex. 

When buying an apartment complex, your goal is to maximize your capitalization rate. Therefore, most new investors focus on 'fixer uppers': apartment complexes that may look a little worse for wear, are being managed inefficiently, or are located in an undesirable part of town (preferably one on the verge of turning around). When an apartment complex has obvious flaws, it makes a great first project for an investor. The start up cost is low, and there is lots of potential for increased income. However, due diligence is important to ensure that the steal you think you've found isn't just a money pit that you will grow to hate.

Income and Expense Statements. 

Before you come for your first visit/inspection, be sure to inform the owner that you will be coming for that purpose. Ask that the income and expense statements be made available to you. A large part of what you will learn about the apartment complex will be on those pages. You should look at expenses, net operating income and gross rent to help you to evaluate the income potential of the apartment. By the time you read them you should know the market rent for similar apartment complexes in the area. You should also look at the types of leases that the tenants have. There may be an opportunity to pass more of the apartment's maintenance costs to them.

Physical Inspection

Be sure to carefully look over the apartment, if you like what you have seen on the income and expense statements. When looking over units, check a reasonable percentage of occupied and unoccupied units and assume that the rest of the units are in similar condition. However, if you take the time to look at all of the units you may be able to ask for a reduction in price if some of them will need significant repairs.

While you look over the units, ask questions (if it is not included in the paperwork) about the number of vacancies in the apartment complex. The best investments are apartment complexes with around a 20% vacancy rate or higher. The more vacancies you can fill, the more opportunity you'll have to immediately increase your revenue with minimal investment. However, don't get too excited about a high vacancy rate. Be sure to acquaint yourself with the reason that the units are vacant to avoid making mistakes.

When you look over the property, and go over the accounts, keep in mind that you are looking for a complex that is a steal because of improper management or minor cosmetic flaws (i.e., high vacancy rate, inadequate rental agreements, ugly landscaping or facade, etc.) If you are still interested in the property after you inspect it, be sure you have a professional inspection conducted before you purchase the property. Structural damage and plumbing issues can go unnoticed by the untrained eye and they will be expensive to fix. Remember, ideally you're looking for a property that requires minimum changes that will give you maximum profit.