All Forum Posts by: Kenny Anderson

See article below about the DC market.

http://www.nbcwashington.com/news/local/Average-DC-Home-Homes-Skyrocket-22-Percent-in-a-Year-Report-230829271.html?_osource=SocialFlowFB_DCBrand

It will be really hard to find good deals in a market like this. Thoughts?

@Ben Leybovich

Thanks a lot Ben.

@Ben Leybovich

I enjoy serving. Thank you for supporting!

So to summarize, use NOI to determine value since it's a common factor regardless of how the purchase was structured. Basically, if I use 10% as a constant and calculate the expected NOI, I can then determine what I should pay for the property, i.e. value?

@Richard Mann

@Richard Mann , what do you mean by "seasoning?"

@Ben Leybovich. Can you please explain/break down that last calculation?

Capitalized at 10 CAP this valuates at $156,000 - and I wouldn't do anything less than 11 CAP.

Thanks for the info David. I always thought HML sounds like a risky strategy, especially if/when the property doesn't sell. Just spending time learning as much as I can about different financing options.

@Rusty Pollard , OK..got it! So he is referring to return on investment.. Thank you sir.

@Josiah Reutter. A few people have mentioned that you could use your VA loan, occupy that home and then rent it out when you move to another location or establish another primary residence. However, your VA entitlement will stay with that property until you refinance your mortgage (not VA streamlined) to free up your VA entitlement.

I have a newbie question. I see hard money lending is usually used for flips. Would there ever be a situation where hard money could be used to purchase a property that could be a buy and hold and used as a rental? Seems like the fees associated would be too high and it wouldn't make sense to use. Just trying to figure out financing options to obtain properties in the $250K-350K range without using traditional financing.