All Forum Posts by: Lambros Politis

My real estate portfolio, located in the Pacific Northwest (technically a primary, A/B class market), still presents tenant headaches. I understand I can't completely avoid problematic renters. I'm curious, statistically and generally, if double-digit cash-on-cash returns are achievable in B/C+ class multifamily markets. I'm aiming for solid returns (10% cash-on-cash?) in a moderately low-risk market, given my low risk tolerance. I'm wondering if such a market exists outside my Pacific Northwest bubble. As always, your feedback is welcome and appreciated. Thank you for your contribution to this post. If I need a reality check, I'm open to that, and value experienced investors' insights to manage expectations.

Thank you, gentlemen, for the valuable insights - your feedback is very much appreciated. So based on what I'm hearing, it sounds like achieving a 10% cash-on-cash return in a B-class multifamily market in year one is pretty unlikely. Is that a correct understanding? Is it time to manage my expectations and set my sites on a lower yield goal?

Stuart, thank you again for your insights - you are the man! While hard/soft money lending is outside my area of expertise, I'd like to discuss a potential levered IRR scenario.

Consider a $2.1 million property acquisition (10 cap) using a 1031 exchange with a $715,000 down payment. Assuming:

• - $300,000 gross scheduled income
• - 30% operating expense ratio (resulting in $210,000 NOI)
• - $1,385,000 loan at a 6.7% interest rate

My calculations indicate a first-year levered cash flow of $99,560, yielding a 13.94% cash-on-cash return. I'd appreciate your review of these figures and your perspective on the feasibility of this strategy in a relatively stable market. Am I on the right track, or are there significant risks I'm missing? Many thanks in advance for your insight into this. 

Stuart, thank you for your very detailed and insightful response. To confirm, in a relatively stable market, an unlevered 1031 exchange of a million-dollar asset in a high-yield tertiary market—with no debt—would not realistically generate a 10% cash-on-cash return in year one? Appreciation is not a factor for me at this time.

I'm looking to liquidate my modest real estate portfolio in the PNW via a 1031 exchange and move into a high-yield tertiary market. I'm targeting a double-digit cash-on-cash return in year one. Even with these significantly elevated interest rates, are there markets where sufficient cap rates remain on multifamily to achieve that target? I don’t really care about appreciation, I mainly focused on significant cash flow with minimal tenant headaches.

Greetings All, 

I am new to the site and this is my very first discussion post. I haven't seen a forum post regarding homeunion.com in quite some time. I am curious to learn if folks here have used the service and what their experiences have been like. I have been shopping around a bit and exploring other options like Norada, Maverick, and Real Wealth. I was hoping to  chat with someone who has actually used these types of remote data analytic real estate investment services. Any insight into the matter would be greatly appreciated. Thanks in advance!