All Forum Posts by: Jordan Thibodeau

Fisbo? Are you including brokers fees in this when you sell? Also how long will the repairs take?

Yes for both. By not including those numbers you're inflating the returns.

Damn. I wish I could join you guys, but I'm in the south bay and I can't make the drive during the week.

Hi Everyone,

I wanted to see what type of cap rates you are earning on your duplexes in sacramento.

I purchased a duplex in december with a cap rate of 7.52%. It should be at 9.12% but I inherited a unit collecting below market rents with a 2 year lease agreement (Noob mistake).

Thanks,

Jordan

Hi Jordan! (Excellent name :-) )

It really depends upon your own financial goals. First I would determine what your financial goals are, then work backwards from there. There are million different ways to determine what your criteria can be, but I just want to list two so I don't turn this into TL;DR status.

If you're trying to reach Passive Income Retire Early (PIRE - Term Copy Written By Jason Hull, Don't sue me bro) you would then look for high cash flowing properties. Determine your retirement number (i.e. I need $1,000 a month to retire early, I want to buy 4 properties, so each property must cash flow at least $250 after all expenses).

If you just want to own property and have someone else manage it, you won't expect such a high cash flow number because you're including property management fees into your equation.

Also, I hate paying for information, but I found these two books (1 & 2) useful in helping me determine my criteria.

Bummer! I'm in San Jose, if you guys think about meeting up again, please let me know.