All Forum Posts by: Dan G.

Hi Jay,

I researched the sinkhole insurance and my understanding is that it only covers catastrophic loss - damage so severe that the government has declared the house to be uninhabitable. Any sinkhole damage short of that would have to be fixed out of pocket. 

I do understand that high cap rate properties have more headaches but I was planning on having everything managed by a property manager. 

Yes, I am the nervous type - I believe in Murphy's Law and I want to take as little risk as possible. Every area has pluses and minuses but I am looking for a sweet-spot where the risks are relatively low for the ROI I would be getting.

Thanks, 

Dan

 No, I wasn't taking that into account. How do I add that to my calculations? I'm not familiar with the particular areas that are prone to depreciation. 

Thanks! 

 Thanks Jay. My concern with Orlando is that the area is known for having a lot of sinkholes, which are relatively rare but still do happen. And I would also be worried that the next time we have a big economic recession or depression, it could affect tourism in Orlando which in turn could affect employment and lead to evictions and vacancies. 

I'm new to this, but if there are areas where CBS construction is unnecessary then I would be open to non-CBS construction. 

 Thanks Jason.  Kansas City, Kansas, or Kansas City, Missouri?  What kind of cap rates could I expect to make there?

I forgot to include that I don't want to buy houses anywhere that has state/city income tax and I also don't want to buy in an area that is totally reliant on one company or one industry, such as a town where almost everyone works at a single manufacturing plant or a town that relies on a single industry such as oil.  Places like that have an extra element of risk, I believe.

I'm looking for CBS because  one thing I don't want to ever have to worry about is the basic structure of the house.  

Thanks!

Hello, 

My name is Dan and I'm new to Bigger Pockets and to real estate investing. There aren't many great deals in my area so I'm thinking about investing out-of-state and using a property manager. Where in the US can I get the highest possible cap rates for single family homes (preferably 3/2/2) without having to buy in bad neighborhoods that would have a lot of evictions/vacancies and other headaches? CBS is a must-have (no wood frames). Also, I would rather have a high cap rate than high appreciation on the properties. To me, appreciation is too speculative to give up cap rate for. I am willing to buy single family homes pretty much anywhere in the US as long as the cap rates are high, the construction is CBS, the neighborhood is decent (low crime/safe) with reliable tenants willing to live there, and the properties can be managed by a good, local property manager. Any suggestions as to which cities/zip codes can give me all this with the highest possible cap rates? 

Thanks! 

Dan

If a 15% cap rate is not realistic in South Florida, what is realistic?  

Does it make sense for me to invest in properties in the Midwest and use a property manager to manage them (since I don't live there)?  Personally, I would rather have the much higher cash flow and little or no appreciation.  I'll take a bird in the hand any day.  Appreciation is speculative, kind of like the stock market.  Over time, you get good returns, but there can be big dips that can extend for years.

Thanks!

Dan

Thanks Sterling,

I don't have a ton of time to do marketing to acquire off market deals, but I could work with a wholesaler, or with a local real estate agent who works with multiple wholesalers.   Will I be able to get the homes inspected before buying so I don't have a lot of risk of buying a lemon?  How much of a discount will a wholesaler give me below market price?  Is the discount huge, or it the discount fairly small?  What's the best way for me to locate a real estate agent that works with wholesalers?

Thanks!

Dan

Hi Jamal,

How would I find an agent who has access to off market deals?

Thanks!

Dan