All Forum Posts by: Account Closed

You make an assumption that no one has ever overpaid for a property or gotten a great deal on a property. If it was true that every property always sold for exactly market value, then the appraisal industry would not exist.

1. Um NO, I'm describing MARKET VALUE. Do you need me to provide a definition?

2. The Appraisal Industry DEPENDS on sales comps. The Appraisal Industry interprets those sales for people that have no understanding of MARKET values.

0 Votes

Originally posted by @Brent Coombs:

(This time, Bob's got it backwards!)...

Please support this incorrect statement.

1 Vote

Originally posted by @Ned Carey:

@Scott Prock I think @Brent Coombs answered your follow up question well.

If it is still not clear I will try another example.

Cap rate = NOI/market value,

Is the market value $800,000, $1,000,000, or $1,250,000? You cant JUST make up numbers.

0 Votes

Originally posted by @Thomas S.:

You will find out this is a horrendously terrible deal.

You calculate the cap only on the existing lot rents.

Why?

0 Votes

Originally posted by @David Veeder:

I don't like the 0.65% rent to value ratio on your deal in CA. I invest for cash flow. Rules: 1) Don't lose money 2) There must be cash flow. Any appreciation is an extra benefit.

Oh ! Your option 2 has a 1.25% rent to value ratio. I would be comfortable with that as long as I have confidence in my partner/manager in Clevland.

Geez David, rent to value ratio is ONLY used to get novice investors like you to invest in crap areas. The higher the number ONLY means the market rent is WORTH LESS!

1. Better to have a .8% RTP ratio AND have appreciation so that every $100,000 in appreciation gets you an increase in rents of $800!!! Having a 2% RTP ratio but no rent growth or appreciation means any cash faux is eaten up by inflation and capEx.

2. Cash flow is for poor investors or investors that are poor.

3. Learn what your long term appreciation rate is. Ignoring it is foolish.

3 Votes

With only $35,000? Probably buy a nicer car.

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Nope, Bob's got it exactly right. Cap rate measures market value of NOI. One sale does not make a market but thanks Grandma for the deal anyway.

1 Vote

Originally posted by @Account Closed:

@Account Closed hmm thats strange ok try this: https://www.biggerpockets.com/calculators/shared/220398/8d593713-7168-436f-824f-e8451a24164d

Nope, but it doesn't really matter. A 40% cap rate is impossible in the real world. It would mean a $10,000 NOI is selling for only $25.000.

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Originally posted by @Account Closed:

@Account Closed Here is one I recently analyzed. Let me know what you think :

https://www.biggerpockets.com/buy_and_hold_results/201958

Page not found.

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Originally posted by @Account Closed:

@Account Closed Here is one I recently analyzed. Let me know what you think :

https://www.biggerpockets.com/buy_and_hold_results/201958

Page not found.

0 Votes

All Forum Posts by: Account Closed

Account Closed has started 8 posts and replied 3607 times.

Post: Clarification on Cap Rates

Post: Clarification on Cap Rates

Post: Clarification on Cap Rates

Post: Mobile home investment

Post: In State or Out of State

Post: What would you do? Buy a condo for cash? or finance a house?

Post: Clarification on Cap Rates

Post: new investor - Greenville, South Carolina area

Post: new investor - Greenville, South Carolina area

Post: new investor - Greenville, South Carolina area