All Forum Posts by: John O.

I agree that cap rate is easily skewed one way or another when you want to quickly determine if a deal is worth pursuing.  For properties in the same area, I usually use Gross Yield (Gross Rent/Purchase Price) to see if I like it.  Initially I assume that the expenses should be the same for similar properties (age, size, etc) in the same area.

If you don't mind could you elaborate on how you use cost per unit?  Maybe with an example?  How do you account for different apartment sizes?  I assume a 1BR can't be expected to carry the same costs as a 3BR...

Thanks,

John

I'm very interested. I own one 6 unit multifamily, one duplex and a handful of condos. All located in the College Area and fully rented. I'm currently looking for a new multifamily value-add deal in the same area. I'm also interested in hearing different perspectives on investing outside of San Diego, i.e. IE, Phoenix, Central CA, the midwest, etc.

I'm an investor in San Diego as well. I currently own a handful of properties. Your post triggered me to create an account. I have asked myself the same question many times. So far I've tried to invest in properties where I feel like the neighborhood is transitioning. I have noticed though that the returns can be slightly higher in rougher areas. I'm curious about a more exact location of the property you're considering and some detailed numbers. PM me if you want to discuss!