All Forum Posts by: Marco Santarelli

Samantha M.

Hi Samantha!

A good question. If you want to do a quick "litmus test" on an area, you can take the median or average gross rental rate of the area, as well as the the average property taxes and insurance for the properties you're looking at. Again the will be very rough. another quick method is to looks at the cash flows of actual rental properties in the area. Ultimately the best thing to do is to do a cash flow analysis on a few prospective properties your considering to see if they are good deals at all. (I hope some of that made sense.)

Ryan Halverson:

P.S. I just posted an article on our website last week titled, "5 Tips to Reduce Your Property Tax Assessment." It might be an interesting read for you.

Hey Ryan,

Wow - nice to see you raised the bar high for yourself! Awesome.

The problem with property taxes is it's difficult to negotiate them down with the city. At best you can get a "small" reduction, but that usually doesn't affect your bottom line too enough to make a big difference. So if you're married to a specific area, then you may be married to the property tax rates there as well.

Keep looking as you may find adjacent neighborhoods with lower tax rates simply because they are a different neighborhood. I see this in many cities.

Good luck!

Hi Ryan,

The simplest way to "overcome" this is to invest in other areas. :)

Some markets cash-flow, and others do not. There are so many markets to choose from, why would you "spin your wheels" trying to analyze the 50-75 properties in the same area. (That's a rhetorical question.)

There are many areas that can produce $100-200/mo cash flow with maximum leverage (i.e. 20% down financing).

Continued success!

Yes please. I'll check it out.

Hi Joseph:

These are guidelines from my own personal experience:

1. Stick to markets that make sense (good employment, positive net migration, stable housing market).
2. Stick to good neighborhoods.
3. Stick to properties that are in good shape or newly rehabbed (i.e. turnkey).
4. Try to select properties with a minimum of a 9-10% cap rate.
5. Consider 3 to 5 properties per market for some market "diversification".

[Let me know] if you would like some market suggestions, or have any questions.

Continued Success!

Marco Santarelli

Hi Chris,

Welcome!

You may want to contact @Chris Clothier to discuss your situation. They have a good reputation when it comes to property management and he may be able to help you out. Your property can "live or die" because of management.

Continued success,

Marco Santarelli

Hi Daniel,

Welcome!

Although my company may be able to help you in your search, I would be happy to personally spend a little time on the phone with you to provide you some guidance from my personal experience if you like. Feel free to call me anytime (949) 218-6668 x3.

Continued Success!

Marco Santarelli
Norada Real Estate Investments
http://www.NoradaRealEstate.com
(800) 611-3060 x3

Hello girl12345,

I see that nobody has replied to your question here...

Trada is actually one of our (friendly) competitors - we both develop investment real estate for investors around the country.

In my experience in talking with other investors that have also done business with our company, I can tell you that I have never heard any complaint about them or the quality of their builds. In fact we took a close look at one of their 4-plex developments as a possible "featured investment" for our large investor network.

The bottom line, which we always tell our clients, is to do your homework (due diligence) and satisfy yourself that the investment is solid and will provide you with a positive cash-flow. If they can't provide you the information you need, then I suggest leaning on another seasoned investor for some guidance in doing your due diligence.

Continued Success,