All Forum Posts by: Norberto Villanueva

@Julian Diaz - thanks for posting. Ensure the agent/s on your team are investment savvy, crafting offers that are competitive based on the end goal. Remember, the sales to list price ratio has been at 100%, since April 2016. So it's important no, crucial you shoot first, ask questions later meaning, strategize, analyze and execute (offer!) knowing you'll take advantage of objection deadlines to perform your due diligence while operating in good faith.

All the best!

The trade-off I haven't seen discussed in this thread is the questionable upside potential of markets such as Pueblo, Indianapolis and similar ones where the 1% rent ratio is easily surpassed. 

Of course, you bought a cash flowing property I mean, what is the point in buy and hold real estate otherwise but, what is that respective market's long term play? How is their economy? What is their population growth (or decline)? What's the infrastructure like and is it being developed? 

WHY is the market rent so low?! 

These factors and others will affect real estate appreciation which, whether we like (counting on) it or not, is the 800 lb gorilla where building long term wealth is concerned. 

@Ryan Jones - We are taught in order to reach goals we have to make them achievable. Where ideal, like nirvana the 1% rent ratio proves itself to be a bit lofty in strong seller markets. This said, I regularly see much better than the .5% you mentioned. 

All the best!

@Peter S. - my pleasure. It's best to just strategize around your buy box and go from there. Of course the struggle's real and analysis paralysis is a thing BUT, in this rising market, waiting may cost 11% (appreciation) on average, 20% - 30% in specific areas meaning, today's $100k purchase may be a $111k - $130k purchase this time next year. 

You never know what you'll find and time waits for no one. Strategize, analyze and execute!

All the best!

@David Long - thanks for posting. Congrats on a great find! 

@Colin Smith's right, one can purchase a condo for less than $100k. In fact, there's a 1/1 one on the market right now at $48,500 and it will produce about $750 in monthly rent! Forget 1% rent ratio, we're at 1.5% here, baby! But, wait. The HOA fee is $246...a month, resulting in negative cash flow on a 30 year note in year one, two, three...heck, the foreseeable future (+$4 a month in year 17) for a -7% Return on Equity (ROE).

With some exceptions, HOA fees, especially in the lower price points, are so BRUTAL, it's been my experience they're hardly worth analyzing for an investor seeking cash flow. However, with a principal and interest payment of around $225, $475 with HOA fees, a little down payment and closing cost assistance, it'd be great for an owner occupant, first time home buyer...?

@Peter S. - thanks for posting. It's too broad a stroke to firmly say but, I will suggest an ARV up into the low $200's will work in many areas.

@Ali Boone - thanks! Please check BP Inbox!

@Daniel Linn - thanks for posting. Seems you have a pretty good feel for what the market is and is not (easily) capable of. Understanding your need to have an experienced, investments focused REALTOR on your team along with knowing what you want and, however daunting, being ready to pull the trigger" will take you a long way towards your goal. 

All the best in your search!

@Mark Solomon - thanks for posting. It's important to have boots on the ground when investing in foreign markets. As @Kevin Grinstead suggested, Colorado Springs is indeed red hot with inexpensive inventory that produces favorable rents, especially when compared to Denver, whose prices have investors coming down in droves. All the best!