All Forum Posts by: Bryce Witcher

For sure!

@Hadar Orkibi That's certainly one way to look at it. Another way might be looking at cash-on-cash return average =16.7%, average annual return=29.11%, IRR=29.11%. If anyone has one of these, I think all of us would want one.

@Todd Pultz Yup. Good stuff! These are the guidelines I follow in Phoenix. The per-door price in this particular exercise is merely to help prioritize where my time might be best spent when researching other areas. The average cost per unit in a market is only the starting point. Cash flow is king so all variables on various sub-market properties must be considered individually. Thanks.

@Todd Dexheimer Right. Those points are very important. In this case it will be forced appreciation. I don't think we are in the Phase 3 Hypersupply quadrant just yet, but just in case, our next investments need to be able to weather that storm. Very good article.

@Adriel Hsu Yes. That is what I am hoping to find, as those cities have lower costs of housing/living.

@Will Fraser Thank you for those numbers. I'm assuming those are for Oklahoma City and not Tulsa. I will check into the Price Edwards Annual Analysis.

@Steve Morris Excellent tip. Thanks.

@Alex Forest Yes, that is exactly the type of info I'm looking for. I spent several hours over the past few days on the Bureau of Labor Statistics, Bureau of Economic Analysis, Census Bureau, and U.S. Department of Commerce websites. I wasn't able to get what I'm looking for. Any specific ideas or links?

@Hadar Orkibi Cash flow with value-add component. It is important, especially at this time in the cycle, to ensure that the properties perform well and can weather any down turns. I need to find the primary markets (outside of Arizona) before diving into the sub markets. Like you said... Be the expert.

@Hadar Orkibi More insightful advice. Thanks!!

@Hadar Orkibi Yes. Boston for example has average rent of $2,409 divided by average cost per unit of $304,206, giving us price to rent ratio of .8%. Contrast that with Cincinnati: $980 average rent divided by average cost per unit of $54,082, yielding 1.8%.

Using this analysis will tell me that I should focus my time and energy on Cincinnati before Boston. I will then need to gather those same numbers for the question marked cities above to determine where the generalized opportunities might be.

@Hadar Orkibi  You are absolutely correct and wise about not putting the cart before the horse. I'm glad you mentioned that. The purpose of this exercise is to determine which 5 or 6 MSAs to prioritize above the rest first in order to then do a deep dive on the specific area's demographics, job growth, rents, vacancy levels, and other data. It would be great to be able to specialize in all the areas I mentioned, but from a time perspective, I want to be able to do my market research, and form the much-needed relationships with brokers and property managers, with the best prospects first. Thanks!

@Account Closed That is also a really awesome suggestion that had not occurred to me for some reason. I will contact the bigger brokers in those areas for more info.

THANKS!