70% Rule Central Mass

[Shane Burlingame]

Hello, I've been analyzing a good amount of properties in Worcester County to flip. I use the BP calculators to determine my purchase price, ARV, profit and rehab. I subcategorize each repair item for accuracy. I am a licensed GC, so I feel strongly about the validity of my numbers.

It seems to me that each time I run my analysis, the maximum allowable offer is often about half of the list price. Are other investors finding the same thing with their numbers? Do I adjust my expectations or wait patiently? 

[Colin Kelly-Rand]

@Shane Burlingame

I was laughing pretty hard at 
"It seems to me that each time I run my analysis, the maximum allowable offer is often about half of the list price."

Sounds about right. Patience? Real estate cycles are a documented thing. At some point having cash at the right time is going to feel really, really good. When money is cheap, your money is worthless, but when money is expensive ...just ask Buffet - I think he's been hoarding...

I am hoping to buy operating properties at 100x monthly market rent (not even considering in place rent) - but I see most property in Boston asking for around 140x to 160x. And that's not taking into account renovating these places. I could pay more than 100x monthly rent when rates were around 3%, but at 6.5% I need a at least a 1%-2% cap rate spread over my interest rate.