All Forum Posts by: Clint Harris

Forgot to mention, in terms of comps. There is one other building exactly the same across the street, its the only one like it in the area. One of the 2/2 units sold for 70 K in 2017, not renovated, bad roof, old unit, water heater, etc. The building that I’m looking at has all new floors, brand new architectural shingle roof, new units, new water heater’s, new countertops, etc, not much of a comp.

Exactly right Bill, these are 3 separate addresses, 200, 202, and 204, three separate townhomes that are connected. The seller wants to to sell them all as one, it’s a 3/2 and 2 2/2 town homes. They were renovated last year, in great shape, and right outside the gates of camp Lejeune, and they have had extremely high occupancy since being built in 2007 with word-of-mouth from the Marines having the next tenant lined up before one moves out. They are three separate addresses, to refinance them all would be three separate residential notes, but my banker, president of a local bank that does not sell their notes, can give me a better loan to value with lumping all three as a commercial loan. After looking at them today, the Cap X are very low because of the new renovation and everything really looks good with the exception of Federal Pacific panels in all three units which need to be replaced because of the recall. Besides that, it’s unique in that it’s not a traditional triplex, but after finding out that the tenants pay their own electric, water, sewer, garbage, and landscaping, the CR is much more attractive and the cash on cash return is good. I’m just trying to ask what Cap rates different people are looking for. If yours depends on where you are in your investing career and what your end goal is, that makes a lot of sense, would love to hear more and how your opinion has changed or grown

I’m interested in upgrading to Pro but there’s no way I’m spending $360. I’ve heard a 20% discount promotion code mentioned a couple times, but I can’t remember it or remember what podcast it was in, does anyone know that promotion code?

Thanks, but I disagree. Here’s the scoop, there are no properties exactly like this one, its a neighborhood of townhomes, with three per building all individually owned. One person ended up with all three townhomes in one building from family members over the years, renovated it, and is now selling the building as a unit. There are no comps, but I can compare to each individual town house with the same floor plan. The owner is an airline pilot who is retiring, and wants to unload all of his properties because he no longer lives in the area.The cash on cash return is good because there are zero repairs to be made, and there are already three long-term renters in place. The reason the Cap rate is important is because if I want to refinance this property, it will need to be a commercial loan, which is dependent on the Cap rate. We currently own three other single-family homes which we owned free and clear, so it’s different with those. They are paid for and provide us with steady passive income, this one is different. There will be some equity, but no forced appreciation. If that equity is to be realized, it depends on the Cap rate.

Interested in hearing what different people have to say. I’m currently evaluating a triplex in Wilmington North Carolina, Gross rent multiplier is 8.1, net income after financing is solid, Cap Rate is at 6%. But that varies depending on the purchasing price. Asking you guys, when you were looking at a deal, what Cap Rate are you shooting for?

Yes, you can use a 203K FHA loan for foreclosures, or any house requiring rehab