All Forum Posts by: Account Closed

@John Thedford, thanks for the reply.  Do you have specific numbers that you consider your minimums for a deal, or are you generally more flexible than that?

Hi @Robi Hawley, I'm going through a similar process writing a business plan for myself.  Did you find any particularly helpful resources when writing yours?  Any advice?  Thanks!

@Robert Martin, the 20-28% profit margin, is that cash-on-cash or cap rate?

@Andrew Henson, thanks for the tips!

@Account Closed, thanks for the explanation.  Wouldn't you consider the 10% cap to be a better investment though (all things being equal)?  It seems to me that there is useful information in that number after all.  It may not be the typical valuation technique, but it is still insightful.

Hi @Ariel Drilon.  I'll keep in touch if I find myself investing in your area.  What are some typical numbers that you aim for in your deals?  I'm still trying to define my criteria.  Thanks!

@Anthony Dooley, thanks for sharing your numbers.  I think 20% is probably much higher than most.  Is that typical for your area or is that something you achieve by doing lots of off-market offers?  How many offers do you make before one gets accepted?

@Matt McCourry, that's all good advice.  I really like how you handled the couch burning.  It seems like it leaves some wiggle room for them being stupid, but also gives them a chance to take responsibility and fix it.  I'm glad things are going well.  Why do you say to change the air filters once a month?

I'm curious what you look to find in your detailed analysis. Specific ROI %, amount of cash flow, etc. What are your goals? Thanks for the inspiration!

Hi All,

I'm trying to work through a bit of an academic exercise, and I'd like to re-produce some of the results in the Forbes article, Best Buy Cities: Where To Invest In Housing In 2016. My question is what are the important criteria an investor should look at to determine what area they should invest in (for a long-term buy-and-hold rental)? How would you weight these criteria?

Some thoughts based on the article:

• Job growth ( 3.5% is great, 2% is national average)
• Population growth (8% is good, 2% is national average)
• Good median rent/median price ratio

Which of these is more important than the others. What would you look at as a signal of a strong market?

Also, this article:

http://www.groco.com/readingroom/estate_planning/c...

suggests the following criteria:

• % renters higher
• A market with low (good) median price/ median rent. Min 1%
• Vacancy rate
• Avg cost of housing < 3x avg income
• Days on market. Want low and decreasing
• asking/sale price. If they’re getting the price they’re asking for, that’s good.
• Low unemployment
• Per capita and median household income rising
• Gdp growth

Any thoughts on which of these is more important and if any are ignorable?

Hey @Matt McCourry, 

How is your student rental treating you?  I'm just a little curious for an update.  Hope all is well.  Thanks!