All Forum Posts by: Gloria R.

Hi, Thank you everyone for your input. I'm especially glad for the original question because I have been looking for the same answers....in general.

Does anyone have a pre-existing spreadsheet that they are willing to share? 

Thanks Mark,

I'm pretty much an expert residential realtor with a lot to learn about buying investment properties. I appreciate your welcome. 

@Lisa Schofield and @Justin R. I appreciate your involvement 

Saying my CAP view is immature is accurate, but it's all I really know that is black and white. To watch unemployment, appreciation and rental trends are other tools that seem to be highly used by those with experience...I would think that because so many people do this for a living that they would have that kind of information readily available to people like me...aside from the ones who want to sell a class, a book or their own properties.

The one thing I see running through this thread is that I'll be beginning 'trial by fire'. That is not in my nature.  But that is what everyone seems to be saying is going to happen because everyone's risk tolerance and knowledge are different.

What other tools should I be using to make the decision as to whether or not a property is a good investment?

@Account Closed   

Yes, one can buy a house in San Diego for less than market value (use $450k as an example), pay to improve it and flip it for a profit ($535 maybe) or keep it as a rental ($2300 plus or minus). Or one can buy a place in Arizona ($250k) no improvements necessary and rent it out ($1-1.5k).  The resale would be the same for a longer time than in So. California but if I'm looking for the best cash flow the latter scenario appears to be the way to go.

I guess I just don't know what I don't know.

Bob,

Thanks for being more conversational. I appreciate it.

It's not one incident...I realize that is what I said (just to keep it short simple but I guess that doesn't work around here -I've been called out by you on every thing I've said so far). As a realtor, past landlord and just being around investors I learn about all of the drawn out drama and huge expense and long duration's to get tenants out when they don't pay in CA. I've had good luck too...but the risk out weighs the reward for me.  A couple of my in laws have several rentals that they've owned and rented out for over a decade in AZ. They have, unfortunately, a lot of turn over. Each turn over is quick and painless...the pain is getting their places back in order and rent-able again.

As far as the Midwest, I did not keep all charts of everything I've read and each CAP I've calculated...I should have said 'had' because when I was looking in the Midwest it was about a year ago. I'm sure it's changed a little, but probably not as drastic as we've seen it here or over in parts of AZ.

Being inexperienced in this arena...I guess I don't see a 10+ CAP as risky. Please explain why that is by itself considered a risk to avoid? I appreciate it.

Thanks Marty,

Yes, agree with the 6-7 CAP as I was just researching them this past week.

Midwest has amazing returns. Yet, I know nothing about cities that far away. That is partially why I joined this site. There is a lot of education going on, except for people like Bob who just want to act like a know it all and blast people. 

I appreciate your insight and caring approach.

All the best,

Gloria

Bob, obviously I'm new here. So rather than blast me with a 'why would you ever' question you should be more conversational about it. I think AZ is more friendly because my in-laws have no problem getting rid of their tenants within days and it took me 4 months and an attorney to evict mine. 

I understand from others that I should only invest in areas that I'm familiar with. Since I am unfamiliar with every where I thought that the closest landlord friendly state is Arizona. A couple of years ago a 10+ CAP was easy...now they are around 6-7.

Bottom line, I'm looking for a state where I can have excellent property management (not me) and CAPs of 10+ and low maintenance multi-family 2-4 unit properties. Resale is not as vital as cash flow because I'm in it for the long haul. 

Yet, if I end up with a property that is not what I thought it was, then resale will play a vital role.  If I do enough research and stick with my plan then I shouldn't have to sell anything before I'm ready.

Interested in purchasing buy and hold properties in other states. Mainly because Southern California has low CAP (3-5) and is not a landlord friendly state. I'm not into flipping, though a lot of investors I work with are...