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All Forum Posts by: Account Closed

Account Closed has started 3 posts and replied 6 times.

Post: What is a good yield/cap rate?

Account ClosedPosted
  • London, UK
  • Posts 6
  • Votes 0

Thanks for all the input!

Post: What is a good yield/cap rate?

Account ClosedPosted
  • London, UK
  • Posts 6
  • Votes 0

I'm planning to become a  buy-and-hold investor, focused on buying single family homes with a 20% down payment. Yes, I would be using a property manager. 

London SFR yield around 4%, which is awful in my opinion. Over here I would have to invest for the sake of appreciation rather than cash flow, which is not the territory I want to be treading on.

Post: What is a good yield/cap rate?

Account ClosedPosted
  • London, UK
  • Posts 6
  • Votes 0

Hi all,

So I've been scanning BP for an answer to this, and it seems that a good yield would be in the mid-teens and a good cap rate would be 8-12%. Can I confirm this with fellow BPs?

(I'm aware that obviously these numbers would depend on your area etc, but I'll looking for a target for these figures). 

Post: Cash flow for present value calculation?

Account ClosedPosted
  • London, UK
  • Posts 6
  • Votes 0

Thanks, I'll chase cash flow after taxes then. 

Post: Cash flow for present value calculation?

Account ClosedPosted
  • London, UK
  • Posts 6
  • Votes 0

Hi all, 

Newbie question: When using the discounted cash flow method for calculating the present value of all future cash flow of a potential investment, do I discount the figure for 'cash before taxes', 'cash after taxes', or 'NOI'?

Thanks

Post: How to estimate expenses?

Account ClosedPosted
  • London, UK
  • Posts 6
  • Votes 0

Hi all, 

(Hint acceded: I've just started my RE journey). After reading a few books/BP-browsing, I've decided to practice analysing real properties. However, I'm stuck on estimating expenses. I understand what is involved in total expenses (courtesy of Frank Gallinelli) and have come across the 50% rule, but I would prefer estimated breakdowns of each expense. From a brief scan on BP, it seems that I can find this information by asking property managers, calling up utility companies, asking seller's agents, etc. However, since I am currently based in London, UK and would like to analyse houses in Canada, these methods aren't feasible to me. How can I estimate individual expenses using the internet alone? 

Thanks in advance!