All Forum Posts by: David Stafford

@Jay HinrichsI'm glad I came across your advice on Property Managers.  I'm evaluating a few out-of-state areas for better cash flow than where I live.  I can get a good idea on the market as a whole, but need to find those sub-markets that will be the best fit.  When you reached out to property managers out of your area, how did you find the reputable ones? And then do you get agent referrals from them as well?

Thanks for the help!

Just trying to get my head around this concept. What is the significance of the ARV based on area's typical cap rate?

I ran numbers on BP Rental Property Calculator and under Financial Projections is "ARV based on Cap Rate". I understand how the math works, I just don't know how to evaluate the answer.

For example typical cap rate in the area is 8%. My net operating income is $15,000, so ARV based on 8% cap is $187,500 - but what is this telling me?

Thanks

I know they owe roughly  $200,000 on their first and $100,000 on their second mortgage, the house is worth about $400,000.  So If I offered them something above their debt wouldn't that be something they might consider? 

Curt,

Could you expand a little bit on why they can't sell at a discount. I'm new to the foreclosure process, but I'm looking at a preliminary title report where the owner still has title and a trustee sale has been postponed for two months.  I'd like advice on whether it would be worth reaching out to the owner and what to say to say to them.  Any insight on this approach would be appreciated

I've read that an investor would want the cash-on-cash return to be higher than the cap rate.   Is this true?