Looking to deploy capital in markets that meet or exceed the 1% rule! Lets connect!!

[Abe Rouz]

Good evening

I am looking to build a team and connect with others in markets that meet or exceed the 1% rule 
Looking to build out a team of a real estate agent, lender, contractor, and property manager 
Below is my buy box: duple to fourplex, meets 1% rule or more, off market

Looking forward to connecting with others! lets make it happen

[Arn Cenedella]

@Abe Rouz

A word of caution………..

The 1% rule, the desirability and amount of cash flow are only a few of multiple criteria you should evaluate when investing.

In my 45 years of real estate investing, I have often seen the following:

1. The rent to price ratio (and therefore ultimately the cash flow) is in an INVERSE proportion to the quality of the asset. As one moves down in quality of the building as one moves down in the quality of the location, the cash flow “appears” to improve in a PROFORMA.

2. The rent to price ratio goes down as quality goes up.

3. The lower the qualify of the asset, the less likely it will perform in “real life” as projected in the proforma. Lower quality assets - older assets - low tenant income and quality - lead to high maintenance costs and greater vacancy and losses.

4. Greater cash flow is available in less desirable locations - where economic growth is slowe or non existent.

One can find greater cash flow in Bakersfield CA than Palo Alto CA. 
Does that mean it’s better to invest in Bakersfield? I think not.

While cash flow is great - buying a fourplex might generate $500 to $1000 a month cash flow (at most). That’s not life changing money.

I suggest for consideration, investing for capital growth rather than cash flow early in one’s investing journey may be a better approach. In my opinion, one needs to accumulate a fair amount of capital before life changing cash flow can be generated.