All Forum Posts by: Carl Schmitt

This thread is hilarious...The more people you meet, the more you realize that normal people are the minority.

Wouldn't it depend on the type of investment? Someone who fixes and flips isn't going to be happy with the same returns as someone who buys and holds. Even in the same category of investing, it would change. Someone who buys in a really nice suburb that has a manager in place isn't going to expect the same return as the guy who self manages a duplex in a war zone somewhere. What type of investing do you plan to do?

I don't own any yet, but when I look at properties and decide if its a good investment, I like to look at the rent to purchase price ratio. It's not the system I would use to actually purchase, but I like it for doing quick numbers. Once you know the market, you know what a certain unit will rent for, and you know roughly what the purchase price per unit should be in that area. In the same town, taxes should be similar, and insurance costs as well. I think you can determine fairly quickly if it even makes sense to look closer.

Wouldn't it depend on what you're looking to achieve? If you're looking solely at the ROI as a percentage, leverage is going to be the best. Then you could refi as high as possible, take the cash, and leverage as many properties as possible. That will give you a great cash on cash return because you're putting as little of your own money into the deal as possible.
If you're looking for the most cashflow without a lot of debt, you could take, say 200k out on a refi, and buy as many properties as possible with the cash(somewhere like cleveland). You'd have no leverage, so you're cashflow would be higher, but your CoC would be much lower.

Good point Kurt... If this is near me I mass, caps are closer to 13 or 14 so value would be even lower. I'm guessing its closer to Boston. There's properties in the Boston suburbs selling at 6 or 7 cap rates.

Hey Ryan, just curious, where in ma? If its worth a million and you only owe 200, have you owned for a long time or did you buy, fix up, and lease? I'd say with 800k equity, it wouldn't be too difficult to pull a little cash out. If it were me, I'd pull a little out, partner with some experienced in flipping, and reinvest your profit from those deals into rentals. Depends on your goals obviously, but I bet that could multiply pretty quickly.

Arjun, you are reading correctly. 2600 is gross rents, not NOI. But yes, with a little negotiating, you can buy it for 100k. I'm not in Boston though, I'm in the other end of the state, near the New York border.

Kyle, wow.... Those prices are incredible. My day job is selling siding, windows, ect. I'd be done for if prices were that low near me!

I'd just cover it up. We're these $1900 asbestos removers doing it legally? It's not a simple process where I live. You can get vinyl installed for 300 a square. A decent painter charges more than that. People love the "maintenance free" aspect of vinyl.

Marie, I would definitely check the true rent rolls and expenses before I were to move forward on anything. If the numbers are way off, how do you come up with a price point? Would you base it on the cap rate youre looking for based on real cashflow numbers?
I love the seller finance idea and have certainly considered it. Do people market for people that want to seller finance? Or do they just ask every seller they see if they'd be open to seller financing?

Sandy, the majority of the properties aren't bank owned in my market. A few short sales and a few REOs but mostly private sellers.

I wouldn't bother with the clear box covers over the thermostats. They have one at my office, and it has vents on the sides of course so it can read temperature, and they take bent paper clips to push the little levers when they get cold. Not so effective...