All Forum Posts by: Jacob Decter

Originally posted by @Tyler Aunon:

Expense ratios should be between 35%-45% the difference in the scale will come from you calling of the city and companies during due diligence to confirm the P&L that was provided. Typically we underwrite to around 45% initially and confirm further if the deal feels like we want to make a move on it. 

 Thanks Tyler. Does that range imply that utilities are passed along top tenants? Do you include reserves in that number?  

I'm conducting an analysis of a few Duplex and Triplex units in my area but have not seen enough deals to get a sense for average operating expense ratios for these types of properties. Assuming a management company, would someone mind sharing what they view as an average operating ratio for Duplexes and Triplexes? Any color around drivers of the ratio for this type of unit would be appreciated as well as  anything tangentially relevant. Thanks! 

Hello All, This is my first post! First off, I'm very excited to be joining the biggerpockets community. I've been on the boards for only a week scouring various threads and have learned an immense amount. Thanks to all of you that are actively building this community. On to my question. As I think about breaking into the world of real estate investing, I'm deeply concerned about developing an intelligent way of thinking about the RE market cycles as it relates to investments. Specifically: 1. How conscious are you of where we are in a given markets cycle when purchasing a good deal? 2. Do you think about cycles on a county level, then by MSA, then by state and finally nationally? 3. Does cycle position directly drive your investment decisions? 4. How do you determine where we are in a cycle? What are good resources you use? 5. Do you often try to "time the market"? Thanks! Jake