All Forum Posts by: Austin Johnson

Hey Tracy,

looks like you're making the jump into commercial properties! congratulations.
what city/town/state is this property located in? (I can assume Raleigh?) that will help determine the cap rate. Cap REALLY change from town to town. for example Houston we're looking at 4.5% cap while the town I'm in (Jefferson City,MO) we're looking at 7%.
you can technically do it the slow way. try to find previous sold properties, find their Net Operating Income and divide NOI by property value to find the CAP rate. do that several times to get a range. (running sales comps) or just ask a local realtor. I'd prefer to ask a local realtor, other investor or the Property management team.
to determine price here are a few equations that are literally above my computer as I type. NOI/Prop Value = Cap Rate.    NOI/ Cap Rate = Prop Value.
Cap Rate * Prop Value = NOI.    Gross Income - Operating cost = NOI.
with this being your first commercial deal, I have to ask if you can qualify for a commercial loan? banks typically require: 1.25 DSCR, previous experience owning commercial properties of this type. 3-6 months expenses liquid and a net worth totaling the loan amount.
I don't know how new you are, so you may laugh at my comment haha. what type of partners are you looking to bring on board?

You're in Houston. I'm actively building a team in Houston for commercial. 
what sectors interest you?

not gone to college... lol.

At least she wasn't being defensive... lol...

Hey Dustin. what type of real estate are you looking to invest in? single family homes buy and hold, fix and flip, short term rentals?
multifamily? small, medium or large? buy and hold or value add?
self storage units? hotels? offices? retail? where do you see yourself?

Let me ask you this. how much profit do you want to make? how much will rehab cost including labor and holding time?
that's how low you want to offer. 

I'm in Jefferson City, MO and I've never seen it here either. yet when i read books about NYC agents, they talk all day about it.  think it must be a bigger city thing. 

have you directly face to face spoke with the landlord?
if so, can you contact their contractor? ask him to come by and fix it and charge the landlord? I'd avoid small claims myself but that's just me.

Johannes! hey hey man! Welcome to BP!

walk away. negative cash flow on the edge of a recession and you're banking on appreciation? no thank you. I wouldn't buy and hope it appreciates and pray the market never cools. But hey, what do I know