All Forum Posts by: David Jenkins

@James Wheelock That makes sense. So the deal is in those hidden / potential future costs that one can't see. 

@Immanuel Sibero when I punch 100K divided by 1M in a calculator I get 0.1 -- Not .10 -- 

I realize that this must be incredibly rudimentary but math is definitely not my strong suit. I understand real estate, how to negotiate and what makes sense... but math is where I fall apart. I have three investment properties that were bought with my own formula that looks like a 7 year old put it all together, and somehow still managed to cash-flow quite well. 

@Steven Preston -- So the NOI is the income after all building expenses are deducted? Going to re-write what you wrote as it makes sense to me --

List price: $1M 

Income from rents: $200K/annually 

Building expenses (bills, maintenance, pest control ect) : $100K/annually 

$1M list price divided by $100K difference after expenses = 10% cap? 

Hi -- Can someone please explain how I'd be able to figure out a cap rate on a calculator as if I were a 5 year old?

I've seen several other investors try to explain this and it still looks like Chinese to me (and I don't speak Chinese). 

I'm a realtor / investor who actually owns several smaller apartment buildings / units and have always relied on a simple napkin analysis of: How much cash flow I wanted to earn after downpayment. I've never used the traditional formulas of cap rate / GRM / ect -- However, I want to purchasing much larger buildings (20+ units) and think having a basic idea of the fundamentals is probably necessary. Thanks!!

@Danielle Fattizzi Great advice!! 

@Account Closed I own two 4-unit buildings and two SFR rentals. I'd like to use these to upgrade into something much larger in the next 2-4 years. 20+ units. But want to be as educated as possible first. I was looking at CCIM courses, and they look great, but want to see if there's anything else out there that focuses on larger multi unit investing education. Thanks!

Looking for targeted courses on large multi-unit commercial/residential investing. 30-200 units. 

Thanks in advance! 

I am about to purchase my 4th investment property, a SFR. Instead of renting it out the traditional way, I understand that converting a home into a group home or boarding care facility is very profitable.

Like everything else, I know this will require tons of research. I'm not sure where to start. But wondering if anyone in the SoCal area has done this and what your experience has been? 

FYI, this is in LA County. 

Thanks in advance!