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All Forum Posts by: Account Closed

Account Closed has started 8 posts and replied 3607 times.

Post: Terre Haute, IN

Account ClosedPosted
  • Investor
  • Honolulu, HI
  • Posts 3,894
  • Votes 1,698
Originally posted by @Account Closed:

Hey BP,

I've been researching various cities, and it seems like Terre Haute has a low median house price with a high median rent. 

I would be concerned why the market will pay so little for the higher RTP ratio.  Usually means the properties are not very profitable because of either high expenses or difficulties collecting rents.

Also there is no use for cap rates on SFR's. Doesn't take a rocket surgeon to figure that out.

Post: How to walk thru this deal

Account ClosedPosted
  • Investor
  • Honolulu, HI
  • Posts 3,894
  • Votes 1,698
Originally posted by @Account Closed:

What are the cap rate individually and what is the portfolio cap rate as a whole? 

Nick you need a sales price to compute a cap rate.  And even if you just used asking price it would be of no use. 

Post: Hotel cap rates

Account ClosedPosted
  • Investor
  • Honolulu, HI
  • Posts 3,894
  • Votes 1,698

There are two aspects to this.  One is the real estate and the other is the hotel operations.  They are best valued seperately.

Post: 300k+ in equity in 3 years, low cash flow should I 1031 out of CA

Account ClosedPosted
  • Investor
  • Honolulu, HI
  • Posts 3,894
  • Votes 1,698
Originally posted by @Pete Perez:

At one of the meetups I regularly attend the guy who runs them always says the same thing. "Every wealthy real estate investor I talk to always tells me that they sold two years too soon." You've got the appreciation you were anticipating and now you can take it elsewhere. 

And the lesson is that you should HANG onto your investment to be wealthier.  Did that go completely over your head?

Post: 300k+ in equity in 3 years, low cash flow should I 1031 out of CA

Account ClosedPosted
  • Investor
  • Honolulu, HI
  • Posts 3,894
  • Votes 1,698

As Spiderman says, "With great appreciation comes good rent growth."  Or something like that.  Seriously, generally my markets have a .008 RTP ratio.  I would expect your rents to catch up with the appreciation.  In my markets I'd be expecting $2400 rent growth.

Post: KC Commercial Building CAP rate?

Account ClosedPosted
  • Investor
  • Honolulu, HI
  • Posts 3,894
  • Votes 1,698

You are probably not going to find cap rate comps for this asset class.  If you don't have long term leases that are above or below market it is pretty much USELESS info anyway.  

Even if you did is are your tenants so strong that they could not walk without financial repercussion?

Post: is it normal to ask an agent what the noi is?

Account ClosedPosted
  • Investor
  • Honolulu, HI
  • Posts 3,894
  • Votes 1,698

Because if you are concerned with NOI you should KNOW the market numbers. If you don't they can tell you anything! Look at all the FAKE cap rate numbers that are posted here multiple times every day.

If I was the agent I'd ask what number do you want to hear.

Post: 300k+ in equity in 3 years, low cash flow should I 1031 out of CA

Account ClosedPosted
  • Investor
  • Honolulu, HI
  • Posts 3,894
  • Votes 1,698

@Tim G.  What if three years ago you chased OOS cash flow with $25,000.  What would you have today?

Now you have $300,000.  You have the opportunity to chase cash flow.  Why do you think the result will be different?

Post: Why is cap rate important to rental income investors?

Account ClosedPosted
  • Investor
  • Honolulu, HI
  • Posts 3,894
  • Votes 1,698

Yep!  No cap rates on residential properties.

Post: KC Commercial Building CAP rate?

Account ClosedPosted
  • Investor
  • Honolulu, HI
  • Posts 3,894
  • Votes 1,698

Class A office?