All Forum Posts by: Chendra Grandhi

I am looking for investment properties that meet 1% rule in Stockton area. I could find one or two in Fresno CA but not in Stockton. What is the average CAP rate in Stockton, Modesto, Sacramento areas? Any thoughts on Fresno?

Hello,

I am loiking at investment properties in Memphis area. Being from Bay area, i would like to partner with lical teams who can help me in finding/analyzing deals in Memphis area. I am looking at apartment, SFR portfolio deals and able to find quite a few online but need someone local whom I can partner with.

If you are an iinvester in the area and have good referrals that would be greatly appreciated.

Aspiring REI from Bay area.

Chendra Grandhi.

Fantastic overview of CAP rates from Bob. Very helpful for newbies like me.

Minh Le, Assaf Furman, Michael Delpier,

Appreciate your responses. I am deciding against this one :).

Thank you for helping meake the decision.

List price on the property has been increased recently as market around is getting better. I was looking at it since I am told GA market is hit in general and this area is expected to grow over 6% next few years. 

This property was suggested by HomeUnion, a company does the leg work for you upfront and also does the PM after you buy it. But there is an acquisition fees of 3.5%, which I think is very high but wanted to give them a try since I do not have any team or network in other parts or US. I also like the demographic data they collect for these properties.

Any ideas on finding good investment properties outside of bay area. I am also looking at turnkey properties but the numbers aren't that great there either. 

Thank you,

Chendra Grandhi 

Thank you @Minh Le, @Jay Hinrichs, @Brandon Battle for your feedback. I was on the fence because numbers were not great but didn't know they suck :) .... 

So, is is the rent thatz killing the deal or the expenses? Being in Bay area a rent of 1800/- pm on 190k investment dint sound that bad to me. 

Would these numbers make sene in Houston Texas for example? My primary objective is income but with upward potential in terms of growth. Which markets would be best suited for this? 

Thanks again for the advise.

Hello BP experts,

I live in bay area and this would be my first investment property. Any feed back or suggestions would be great. 

Duplex built in 1980s in Ga, Asking Price - 189 k B Neighborhood - low crime, decent schools, good median income in the area. I do see quite a bit of new construction in the area.

Down Payment @ 25% = 48K

Closing and other costs = 19K (Includes 6K finders fee)

Income

Rent - 1800 pm = 21,600

Vacancy @ 6% = 1,296

Tax = 1550

PM @ 10% = 2150

Repairs @8% = 1,728

Mortgage @ 4.75% 30 yr fixed = 8,860/-, Interest - 6,675/-

Net cash flow at 250/- per month or so. Around 5% COC.

Can any one let me know if this looks like a good deal? I know its not a steal :)

Also, I am told GA market is very hot now and can expect good appreciation in next few years. What is your openion/experience? Is 190K for a duplex seem to be appropriate for this area?

Thanks in advance

Chendra G

You could also do a refinance on the fully paid one and a cash-out refinance or a HELOC on the other property. You do not have to sell your CA property in CA to buy one or more investment properties in TX.

liked this post very much. Insightful for newbies like me.

I am curious to know how the game for four plex is different from duplexes? Is it because four plex are usually built in C neighborhood? How about commercial complexes? I have been looking at multi unit properties as they are usually less cost per door to buy and seem to have better cash flows. I am not looking at distressed or foreclosures. 

Appreciate insights into SFR vs duplex vs multi vs commercial.

@Seth Teel

Thanks for providing more details. I will look out for zoning and permits going forward. Not know much about pier and beem foundations would have to check on them :)