All Forum Posts by: Joshua Levine

Awesome job! A lot of what you said sounds similar to my situation. Do you mind sharing what criteria you look for and a gist of what your hand written letter said?

Congrats on your success.....where do you go from here?

1 Vote

Congrats! This is extremely great to hear. I live in CT and have felt due to the high taxes it's really hard to earn positive cash flow in the state. Great to see someone put in the work and time and stay patient.

Nice job Warren. Keep it going!

1 Vote

Originally posted by @Robert Herrera:

Joshua Levine just make sure you're making money. It's one thing to go with low cap rates, but if they don't really make money it's a waste of time. I buy houses all day for $50k-$75k. $15k down. Mortgages around $200-$300/Month PITI. Rent for $800-$1,200/Month. Easy 40%+ return annually. So what if they have worse tenants... screen them better before hand.

Robert,

Thank you for this response. I am curious what markets you look in? This may be the approach I want to take and am curious more about your risk tolerance and how you screen your tenants.

Thank you in advance.

0 Votes

Originally posted by @James Wise:

Originally posted by @Joshua Levine:

Good afternoon all. First time investing and I'm curious your thoughts on this. If you are an investor that's main focus is cash flow, why not simply find the highest cap rate you can find and invest in those properties? What are the risks with that approach as long as you do your due diligence on the #'s of each deal and they look solid.|

Thank you in advance.

-Joshua

Higher cap = Higher risk.

When it's going good cash rolls in. However it can turn on a dime. When it's going bad cash pours out.

The move with low quality, high cap rate properties is scale & reserves. You want to quickly purchase enough properties that your performing properties help carry your non performing properties. On top of that ensure you have enough reserves to handle anything that comes your way.

Thank you, James. I am still working through my investment strategy and what kinds of markets to target. I live in the NY/CT region where cap rates of 2-4% are common and it's very expensive to buy. I want to enter a market where I can see consistent cash flow. I am not completely risk adverse, but I certainly don't want to invest in an area where I will have to deal with high levels of eviction, poor tenants, etc. Thank you all for the excellent answers. I may look for area's with mid level caps (6-8%) and properties where I see a value add (like Craig said to do) and increase the cap over time. If I can reduce the expenses by negotiating contract expenses or billing back utilities to residents, even better.

Have a great weekend all.

Best,
Joshua

2 Votes

Thank you all. Great responses! I appreciate the quick help and detailed responses!

0 Votes

-Joshua

1 Vote

@Adrian Orgill Curious how this is going for you so far. Can you pls update us on your progress? Thanks in advance.

0 Votes

Detroit, Michigan

All Forum Posts by: Joshua Levine

Joshua Levine has started 2 posts and replied 17 times.

Post: Trading W-2 for Self Management- 0-92 Units in 16 months!

Post: Successfully Three Family Deal in CT

Post: Investing for cash flow- Cap Rates the 'end all- be all?

Post: Investing for cash flow- Cap Rates the 'end all- be all?

Post: Investing for cash flow- Cap Rates the 'end all- be all?

Post: Investing for cash flow- Cap Rates the 'end all- be all?

Post: Looking to connect with Detroit Investors/Agents/Property Manager