All Forum Posts by: Edward Dandrea

@Erik Estrada

All are rehabbed and rent ready

I’m looking to put 10% down of the asking price but I do believe the asking price is low and the value is double.

8-10% is typical cap rate 10 being good

If u raised price (value) to reflect 10% cap rate then the properties are priced at half of their actual value

@Erik Estrada

1 property has 27 units half rented

1 had 5 residential one commercial (pizza) all rented

1 has 7 residential not rented just finished renovation

1 has 5 units residential all rented

1 has 2 res 2 commercial 3 rented

Other has 5 units all rented

@Chris Seveney

1.93mil

54 units

NOI is 40k a month

6 properties

@Robin Simon

So the asking price is 1.93mil

Or would be 90 percent of what he is asking, but he is under valuing it with a 22 cap in this market in my area 10 percent is common

The price should be closer to 4.5 mil

I found a portfolio to purchase that I believe will be quite lucrative we’re talking 22% cap rate!

The owner will finance me 1.8million of the purchase price but 15year 10% for 5 then 12% then 14% for the last 5.

I’m afraid of the balloon even though I’m good about setting the money aside.

I’m wondering how difficult it would be after purchase to get into a 30year fixed loan and what rates I might expect.

I’m looking for any advice here I’ve only been a landlord for 7 years or so and my portfolio now is under 1 mil.

@Sam Yin

I want cash flow. Interest rates double the cap even with 20% down makes cash flow way less likely.

@Chris Seveney

Makes me want to read the riot act to realtors, they have some influence with sellers on setting prices. Im a little knee but I guess it’s supply and demand but in real estate things move slow.

One thing that happened in my market which is outside Manhattan, is the prices rocketed up because people left the city and took on a commute and to them the prices were no problem (more money in the city) This definitely hit single family homes hard but seems to have hit everything.

What is the best course of action just wait a little for them to drop.

I don’t know if it’s my market or what but I often see mf properties that are boasting around 8% cap rate but the current state of lending is around 8% so there is no cash flow to be had?

Am I missing something?

Is that crappy state of lending at the moment?

Is that the crappy state of pricing at the moment?

Is it just my area? I’m hour north of NYC

I want 10-11 % if my loan cost me 8%

Or

If property caps 8% I want loans at 5%

My last purchase my loan was 4% and cap rate was 14% what’s going on lately?

@Alex Bekeza

I will check it out does it require a particular property in mind or do you do pre-approvals so I have a budget to shop within?

Does it require certain down payment percents?

Sorry for some of my questions I’m a little new to borrowing: my credit score is around 740 but I usually buy my properties for cash. I have a heloc on one because it’s flexible but with a variable rate I paid it off and haven’t used it this year. I make about 70k on w2 and another 30-40 off real estate investments.

I have no debt to speak of (4K car loan) but I’ve been looking at a mobile home park with a 10% cap for around 500k and at a fixed 6-7% loan would be worth my time to manage.