Investor · Tarzana CA and Houston, TX · Member since 2015 · 326 posts · 130 votes
Hey all
As mentioned before I am looking to scale up my portfolio in Houston and I am looking specifically in Stafford, Missouri City,Meadows place, Sugarland,Katy
I'm more of a sfr b- to c level investor when it comes to deals ...I want people in my units that are renters and want to be renters...ya I'm aware of scale with multi family..I'm not against the idea but I like the diversification of location esp in Houston...I don't want a hurricane damaging a big chunk of my portfolio at once if flooding is localized...I'm not opposed to MF but the numbers have to be really good
With that said... I want to be added to wholesalers lists
So if you service Southwest Houston add me to your list and pm me for my email address!
I am a buyer and have cash to deploy...I already have some under contract but have the appetite for more if the numbers are good.
Do you need help with finding properties for you or what's ur expectation? I am not a wholesaler but investor mentor help investor to build portfolio.
Hey there Vijaianand... I am also in Sugar Land.... sure if you have good investment opportunities... im looking for cash flowing properties... better cash on cash return the better... clearly everybody wants the same.. lol
the deals ive done recently are ranging in 100-120k "fixers" that i can get 8-10cap rates via fixing and renting. mainly looking in the non flooded areas of southwest houston
Investor · Sugar Land, TX · Member since 2016 · 62 posts · 48 votes
8y
Alex
I'm familiar with the term "cap rate" for valuing apartment buildings (5 units and greater), but you appear to be talking about single family residences (I.E. 1 to 4 units) What do you mean "cap rate" for these? Do you really mean return on cash invested ("Cash on cash")? Or return on investment? Or??
I'm familiar with the term "cap rate" for valuing apartment buildings (5 units and greater), but you appear to be talking about single family residences (I.E. 1 to 4 units) What do you mean "cap rate" for these? Do you really mean return on cash invested ("Cash on cash")? Or return on investment? Or??
calculating the cap rate is the same... its not specific to a type of investment building... it can be for a single family home, multi unit, storage unit.,, whatever it is
in my examples i am looking to rent out or flip (depending of margins are good) and can do the same type of formula
cash on cash return will vary on how much cash you are using in your equation... return on equity is probably a better way to look at things if you are using leverage especially
Investor · Sugar Land, TX · Member since 2016 · 62 posts · 48 votes
8y
I'm not challenging you, just trying to clearly understand your metrics/goals so I don't offer you properties that don't work for you.
Can you please state your formula?
(When I look at my "equity" in properties I subtract out selling costs because I always have some. Lifestyles Unlimited does not do this, so their "equity" is inflated/unrealisticstic.
My "equity" is: ARV minus selling costs minus liens.
My "profit" or "gain" is: ARV minus selling costs minus liens minus total cash invested.
What is your cap rate formula since I still do not fully understand?
I'm not challenging you, just trying to clearly understand your metrics/goals so I don't offer you properties that don't work for you.
Can you please state your formula?
(When I look at my "equity" in properties I subtract out selling costs because I always have some. Lifestyles Unlimited does not do this, so their "equity" is inflated/unrealisticstic.
My "equity" is: ARV minus selling costs minus liens.
My "profit" or "gain" is: ARV minus selling costs minus liens minus total cash invested.
What is your cap rate formula since I still do not fully understand?
Thanks
yeah thats right but i am not looking specifically to flip properties... i am trying to just get a return on my cash ... my goal is to buy a fixer upper to produce a better return on my cash than a turnkey propert... regarding cap rate... its a formula that is just for comparison ... its not the end of to real estate investing, i just use it to get a sense of what markets i am looking at in my area.
its your net operating income / purchase price... so if you net 10,000 a year after all costs and the property was 100,000 then you have a 10 cap
it takes leverage and downpayments etc out of the equation and makes things easier to break down for me personally
the higher the cap rate the higher the theoretical return on paper.