All Forum Posts by: Account Closed

 Are you planning to do business in both Georgia and Alabama or just in Alabama?

It sounds like a simple business tort issue. You made them (insurance company) aware of this and their response was?

What would you estimate your investment horizon/holding period to be on a multifamily investment and what would you estimate your cost of funds to be? Assuming you are getting a mortgage of some sort to finance the investment.

Many investors typically will have varying cost of funds (how they finance the investment), different investment horizon (2, 5, 10, 15 years etc.), variations in local market conditions where they invest and expected minimum rates of returns that vary. 

How you look at any investment as an investor is personal and affected by your particular investment goals and objectives.

The closest you would get to a one size fits all approach is by utilizing the "70% rule" for flipping. With rentals you may hear of the 1% or 2% rule. These aren't always applicable or feasible in every market but is a start for many noobs. 

The IRR, Net Present Value etc. are also tools often used to analyze any type of investment -- be it a flip or rental.

 What type of deals? Flips or rentals?

When you say "instantly appreciate", it sounds like you meant to say "instant equity". If you are trying determine the rate of real estate price increase in an area, you could use the housing price index data for that area.

For the rentals that cash flow $200, what average cap rate are you seeing on those?

Any reason in particular for any of those areas? It appears the average price per multifamily and average rent in some of those areas may be more than that of Los Angeles.

Investment decisions aren't emotional. The numbers tells you if it makes sense or not. The minimum entry for a multifamily investment in Los Angeles may be in the $500,000 range. If you were to invest that amount in another market, where you are likely to get the best internal rate of return (IRR) on the sum is where you would invest in.

Negative cashflows on rentals in Los Angeles is very common which by itself is sufficient cause to drive income driven investors elsewhere. 

Its like investing in stocks. Some income driven investors only invest in stocks that pay dividends. Some only count on the price of the stock appreciating. 

Each investor has their motive and agenda.

 You may want to clarify your question.