All Forum Posts by: Dean Bogan

@Jonathan Greene

Isn't income the driving force with all investment properties no matter how large or small?

@Taylor L.

Thanks Taylor.  I am looking at all metrics.  I am practicing analyzing deals on paper and messing with numbers to see what effects what and how to manipulate the numbers for a better deal with less risk.  If I come up with safe numbers even though they may get shot down because the offer is too low--OH WELL!  At some point with some property, a low offer will get accepted to the terms i came up with.

@John Erlanger

Thanks John.  This is my only holdup from pulling the trigger on my first one.

I am a little less than a month into my research stage of investing.  I'm getting a good grasp of everything as I am very analytic.  However, cap rates are somewhat confusing to me.  I am under the assumption the lower the cap rate the less risk involved.  I am practicing analyzing deals and when I find what appears to be a great deal, the cap rate is 14 to 20 and sometimes over 20 percent.  when I play with the numbers and the deal gets worse, the cap rate goes down.  Can anyone explain why the risk factor would go down as the deal gets worse and goes up as the deal gets better?  Am i looking at this ALL wrong?

@Zach Lemaster

Thank you for the information, Zach.

Thank you Tyler and Joe.  At some point, I will be doing the ugly deals.

I have been researching all of the ways to get into that first investment.  I feel that the turnkey option is the least laborious to get my feet wet.  I have an extensive construction management background, so doing a rehab is not going to be a problem.  My problem may be funding.  My credit is good, but I may lack cash on hand.  I have cash on hand but I'm not sure if its enough for a lender to feel comfortable.  I do not want to say how much I have, but what would any of you think is the least amount someone should start with?  How much have you personally started with?  Is turnkey a good first investment?  is turnkey not a good investment?  Why is it not a good first investment?

I have formulated my own ideas of pros and cons and I want to see if they are on par with people who are already established to weigh how much I have learned.  Thank you all, in advance, for your input!

it is if you want turnkey rentals. As far as performing a BRRRR, those properties are few and far between. From what I have gathered the pricing of homes far exceeds the rental averages.

I'm in Wilmington and research in Charlotte, Raleigh, Durham, Fayetteville, Chapel Hill, Jacksonville, Greenville, Greensboro and possibly Winton-Salem.  There is not much on the market for investors in Wilmington--At least for my goals.