All Forum Posts by: Lance Knapp

Thanks for the insight Bob. There are a few issues with praying for rent growth and appreciation. One - there is no guarantee, and I am uncertain why they would go higher from here. #2 - much of LA is subject to strict rent control. Any further info or abilities to shift my thoughts are much appreciated!

Please explain further Bob. Do you mean cap rates? Cash on cash? GRM? Or do you just mean potential for appreciation - if so what is the narrative there. Thank you!

I have looked at 50-100 deals in my area of West Los Angeles. It is difficult to find properties that are cash flow positive after expenses and debt service. Basically, the deals do not look very attractive. I am curious to know what experienced investors think of today's markets and whether or not now is a good time to buy. It worries me that we have had years of quantitative easing and low interest rates. I don't want to be the fool who buys at the wrong time when attractive opportunities could be around the corner.

Thank you for the help!! - Lance

Hi All,

This is my first ever post on Bigger Pockets and marks an exciting time for me. I am a commercial real estate analyst living and working in Santa Monica, CA. For about 6 months now I have been absorbing any educational information I can regarding real estate investing. Also, I have analyzed and viewed 50+ deals in my surrounding areas.

I am mainly looking at single family, duplex, triplex and fourplex properties. Many of the deals I see are cash flow negative after expenses and debt service (principal and interest on the mortgage). I have found a few deals that are cash flow neutral. On these neutral deals, I basically make $0 a month, but I get the benefit of my tenants paying off my mortgage, interest write offs, and the potential for appreciation.

Trust me - I want more than anything to buy an investment property, but I am a bit discouraged by the lack of cash flow and high prices in my surrounding areas. Also, I have my concerns regarding the US economy. One could argue that years of quantitative easing and low interest rates have masked underlying issues that could lead to a magnified and painful recession somewhere down the line.

Can anybody provide me with some advice and words of encouragement OR caution?

Really appreciate the support and help. Thank you all.

Best,

Lance