All Forum Posts by: Brent Chauvin

Don't overpay for a trailer, especially if land is not included. 

Agree with Braden. Do

It yourself at SOS website. Very easy and straight forward. 

agree on multifamily. But he could also so SFR, buy .60 on the dollar, live in it for a year then pull out equity, buy a second and rent the first. BRRRR

so in your case 36,000 rent for the year take 50% for expenses and NOI is 18,000 and divide that by .10

price= net operating income /cap rate

And I guess if your happy with a 5 cap.....you should jump all over this deal!!

I agree it's overpriced. At $750 per unit just using the 50% rule for expenses I come up with a 180k valuation at a 10% cap rate. I find seller always is going to underestimate expenses. Even at only 40% expenses this property is worth about 216k. I would walk. 

Not easy in my area....all good properties overpriced. Cheap ones are bad areas/tenants and low rents. 

I made the mistake of buying retail my first few purchases. Don't do it is my opinion. Buying at a discount to market value gives you built in equity right off the bat, which you can then use to pull out and make other purchases. I think you have to be willing to do what most novices don't and that's buying deals through alternate routes--direct marketing, wholesales, sheriff sales, etc.

Sorry meant 3-unit.