All Forum Posts by: Hunter Purnell

Everyone has a different idea of what a good deal is. For me, I care mostly about CoC (cash on cash return) and overall ROI (return on investment). I like 15% CoC and 30% ROI. Those numbers aren't easy to find, especially right now. I would say a 10% CoC and 15-20% ROI are reasonable returns. Some people just want to make $100 or $300 or whatever their number is per door. Varies by market and person. I agree with Michael, probably need to make 100 offers per 1 accepted to find a good deal.

I will keep you in mind for any clients or myself! 

Thanks, Hunter

My name is Hunter Purnell. I'm originally from Kentucky and moved to Palm Beach County to pursue real estate full time. I was previously in construction equipment rentals and did real estate on the side. I have flipped multiple properties mostly land and SFH. I currently have SFH and multi-family long term rentals and I partnered on a short-term rental. I have some experience in commercial and industrial real estate. My family also owned a construction company, so I have some experience in handling projects associated with real estate. If any investors are looking to buy or sell any properties in the area I would be glad to help! I love finding deals and helping people pursue their goals.

Quote from @Greg Scott:

I'm curious why you would want to do this.  This seems mostly an academic exercise as lease rate and Cap Rate are largely set by the market. You don't get to pick them.

The math should be fairly elementary. NOI / Cap Rate = Value. With NNN there is no reduction from operating expenses so monthly NNN x12 should equal NOI. At any fixed valuation Cap Rate and NNN must be perfectly proportional. If NNN goes up 10%, Cap Rate must go up 10%.

I had a major brain fart. It was slightly academic. I was solving for non-NNN. I'm not used to commercial. NNN Cap rate is very easy as you mentioned.

Solved. ChatGPT to the rescue. I was way overthinking it. PP * cap rate + Op. Exp.

I'm having trouble figuring out how to do this in excel. I want to see what the rental rate would be for a NNN lease based on the CAP rate. I have multiple % from 9% to 5% and want to see what rental rate would bring each CAP rate. For example 9% = (x - op. exp.) / PP x = rental rate. I'm not sure if I need goal seek or it can be done with an equation.

Congratulations. Great way to get started. Risky but if done correctly as it looks like you did its an "infinite ROI". I'm curious how many STR's do you think 1 employee can manage?

Quote from @Brandon Croucier:

If your certain you are doing this I would recommend just doing a cash out on your properties, around mid 7's.. having the funds available and put them into a savings account earning 4-5%.. Better than the alternative of having a line of credit at 12%, the 2-3% hit in spread is lower than a 5% increase in cost of capital in my opinion.

This is a solid point. I’m wanting to be a little conservative right now. My loans don’t adjust until 27 and on. I might just use my cash for now. If the deals become as profitable as I hope they will, this would be a good consideration. But ultimately this could fail and I could have to move back to KY. I hate to mess with my cash flow and 3.5% rate until I have more confidence. But I have considered doing this and most likely will when they adjust if not before no matter where I’m located. 

I’m moving down to the Palm Beach County area this Fall. I plan on getting my realtors license and flipping/ investing into properties. I was wondering if there was a way to tap the equity of my entire portfolio that is in KY. Preferably a local bank or credit union in the SE FL area that is friendly to real estate investors. They only allow basically 1 business day for payment at the PBC foreclosure auctions. So I would need quick access to funds. This could expand my purchasing power immensely. Any help or advice would be greatly appreciated. 

Anyone who lives or invests there can you provide your opinion on the market? Is it still red hot or has it slowed down? Inventory has jumped more so in the northern counties. Thanks in advance for any and all opinions.