All Forum Posts by: Brianna H.

@Alex T. I see that I'm a bit late in reading this post, but it speaks to the situation that I am currently in. I want to invest in the Greater Boston area - which is frustrating because any type of rule or return people discuss just does not apply to our market. You will hardly ever find a decent single dwelling property for less than 300k (generally speaking) and even apartments/duplex/townhouse units go for up to 300k (medium standard). Obviously prices vary greatly, but any area that seems nice with a great commute and decent amenities will not come close to the 2% or 50% rule, among other 'rules' and general advisements.

Did you come to any type of conclusion or realization with your situation? I too want to invest close to where I live to easy management purposes...You can charge a decent amount for rent in this area but the acquisition price is typically high as well.

@Richard Villandry This sounds like a great deal for you! You should definitely talk to a few different lenders, AND the current lender to see what your options are. Best of Luck.

I may have the opportunity to purchase a smaller condo from a relative - quite simply put, she doesn't have the know-how or appetite to manage it as a rental and wants to be rid of it. The only way this will work is essentially if neither one of us has to pay anything out of pocket. I know that it may require some creativity here, but is there a way to make this happen? Please note: I have a great credit score and DTI ratio, a down payment is out of the question unless I borrowed from someone else - so basically a down payment is out of the question.

Welcoming all creativity here...thoughts?

I have been reading through some previous discussions regarding how to calculate Cap Rate. To me, there seems to be differing and contradictory information with what numbers to include when calculating Cap Rate.

Let me explain, my initial question was how to calculate Cap Rate. I now understand that:

Cap Rate = [annual] NOI / Purchase Price [some use value]

I also understand that NOI is your income minus expenses DOES NOT ACCOUNT FOR MORTGAGE COST.

Which leads me to this, what exactly do you include in the purchase price - is it strictly what you paid for the property should you include other costs?

Ex. If I purchase a property for $100,000 but have to put $10,000 into renovating it, in calculating my cap rate, do I use $100,000 or $110,000 because it's a more accurate number?

Furthermore, in considering NOI, do you use what it currently rents out for (or a comp if it's not rented out), or would you use a figure representative of what you assume to get for rent after renovations? (educated assumption based on comps in the area or provided by Realtor).

Ex. The property that I purchased for $100,000 currently rents out for $1000/month, AFTER putting $10,000 worth of renovations into it, based on educated assumption, I can expect to get at least $1,200/month. WHAT FIGURES DO I USE IN THIS SCENARIO WHEN CALCULATING MY CAP RATE?

Lastly, I read in one of the forums that if you are using an all cash purchase then your Cap Rate and Cash-on-Cash Return would be the same - if you consider your total investment in COC then they wouldn't be the same if you don't figure renovation costs when calculating your Cap Rate.

Below, is a purchase scenario - can someone please work through the Cap Rate and COC Return to demonstrate to me how this all comes together?

Ex. ALL CASH PURCHASE 

Purchase Price: $100,000

Estimated Closing Cost: $4,000

Estimated Renovations (needed to rent it out): $10,000

Taxes: $2,000

HOA: $200

Current Rent: $1,000

Expected Rent (after renovations): $1,200

If I missed anything else just plug in a fake number to show me, this is fictional scenario.

Thank you - Please help!

Hi All - 

It has recently come to my attention that it may not be the safest route to do a showing solo. I am a petite female which leads some to believe that I may not be able to defend myself in an unfortunate situation - forgive me as I was raised by a Police Officer - these thoughts are simply ingrained in me. Regardless of my build or ability to 'defend myself against an attacker,' (as my Dad would say), doing showings is simply part of the gig.

So my question is this, to all of you that must take this into consideration like myself - how do you go about doing a showing or open house in the safest way possible? I would like to believe in the good in people but the fact is that you really never know. Is this a common concern for other females in this industry, or even males? Or am I the product of a paranoid father of a daughter... 

Advice please! :-)

Hi All - 

It has recently come to my attention that it may not be the safest route to do a showing solo. I am a petite female which leads some to believe that I may not be able to defend myself in an unfortunate situation - forgive me as I was raised by a Police Officer - these thoughts are simply ingrained in me. Regardless of my build or ability to 'defend myself against an attacker,' (as my Dad would say), doing showings is simply part of the gig.

So my question is this, to all of you that must take this into consideration like myself - how do you go about doing a showing or open house in the safest way possible? I would like to believe in the good in people but the fact is that you really never know. Is this a common concern for other females in this industry, or even males? Or am I the product of a paranoid father of a daughter... 

Advice please! :-)

Hi all. I am looking for advice on areas in Florida that are great for general and vacation rental property. Any location recommendations?