All Forum Posts by: John Chung

Shaun-

Thank you for sharing.  Its posts like this that are inching me closer to buying a place soon!

Hi all,

Newbie here....

I was looking at some multi-family RE's.  Wondering what is considered a decent cap rate on an apartment.

I read somewhere that 8-10% is good...but looking in LA...im seeing some 4-6 unit apt at around 5% cap

Is that acceptable as a cash flow positive? or is that more of a breakeven point?

When i comes to cap rate....im in the blind....in the area that i am in

Hi all, I want to buy a property using the BRRRR method...out of state. (I want to buy and hold) I cannot afford to buy in my overpriced state...

How do you analyze a market to see if it will be a good place to buy? (up and coming markets that i can find a good deal or even in a hot market)

1) Is there a site i can go to that shows things like Job, population, business growth/projections.  Places that are high rental areas.

2) Are there sites that shows if area is high/low crime rates.  Good school areas etc...

3) Rental information (what is average rental rates for that area based on metrics i plug in like dollars per square foot, etc...)

4) Should i be contacting a RE agent? Wholesaler? or maybe a turnkey company (although it might be too expensive going down that path)

Sorry for the many questions...but so much to consider...and I don't want to be stuck in analysis paralysis!!!  Just looking for a logical 1,2,3 step method to start my first purchase.

Your help would be much appreciated!!!

HI all,

New to this forum and been listening to a lot of BP podcasts. Hearing a lot about the BRRRR method. I am having trouble understanding how people are getting past the Rent & Refinance and Repeat part.

If you refinance the home to take out your equity (so you can buy another property), then doesn't the monthly mortgage on this property go up?  Then it could be too expensive...and what if you cannot get it rented out or the current tenant leaves or stops paying?  You then need to come up with the mortgage payment yourself.  If you are bleeding money for 3-6 months...then you could be in some deep trouble?  Let alone that you could have already used the refi cash to buy another property. 

I guess that is my fear...and not sure how people get over this risky hurdle? Just feels like you are building a house of cards and one gust of wind and it could cause a negative domino effect. I would think only the ones that have some strong cash savings or well connected people with investor backing would survive in this scenario...but for the guy that does not make a lot of money and just starting out....maybe the BRRRR method could be too risky?