All Forum Posts by: Joe Henry

@Account Closed, I had no idea about there being no cap rates for duplexes or fourplexes. I found some good information about when/how to use them here.

Seems like what I'm hearing is the best way to evaluate a property is to see it, get the numbers from the owner, do your own evaluations, and then purchase under market value. So it's not just a ratio used to define a good purchase, it's just if the cash flow suites your needs and you can buy at a discount, that would generally be a good buy. Does that sound right?

I guess I'm really still trying to figure out the signs that point to a good buy. If you have anything more to add to that I'd love to hear. 

Thanks for your help!

@Brent Coombs ah, I get it. Thanks for the explanation.

@Patricio Tellez-Giron thanks for the advice. Several of the towns you mentioned are shrinking in population. What makes those solid investments? Just the cash flow? I would assume that over time as the population decreases property values would lower. Am I missing something?

@Bill Gulley, I'm calling duplex - fourplex or apartment buildings multi family. So far I was determining cap rate by using the income information provided on the listings or gathering that information myself using rental listings in the area. But none of the numbers for the places I looked at worked, which is why I was wondering if you typically ignore those numbers and just always go look at the buildings and do your own numbers from scratch.

@Brent Coombs, I don't have any limitations on where I could live (open to suggestions), I was just thinking Raleigh because it's a growing city, great area, etc, and does not require as much down to get started as LA.

What do you mean by "2%/m mid-west cool pond"? What does the 2%m mean and what do you mean by frying pan, fire/cool, etc?

I'm a beginner investor (have not made any purchases) living in LA and thinking about relocating to the Raleigh/Durham area in NC since it's a growing place (would also be interested in your thoughts on this).

However, I've been online evaluating every multi-family unit I see for sale in the triangle area and am having trouble finding deals where my cap rate is above 6%.

So question, do you usually eliminate these opportunities and keep looking (just wait for something good to come on the market), or go see the properties and do your own more in-depth assessment of the situation?

If anyone has anything to offer on investing in the Triangle area right now I'd be very eager to hear what you have to say as well.

Thanks!

@Tarl Yarber, thank you for the information. Your stagers did a great job there.

@Tarl Yarber, the reno looks great! Question, did you furnish the house just for the pictures, or sell it furnished with those furnishings?