All Forum Posts by: Matt A.

Hello Stephanie Dupuis
Across the sound here in W Seattle
I'm researching preparing for my first REI, looking at MFR buy and holds
Eager to follow your progress and success on BP!

Our birding extends as far as our backyard. My kids like the Steller's Jay. Mine is the European Starling....

Nice to meet you Sam Jones
Matt in West Seattle.
I'm looking to get into MFRs as well and I'm eager to follow your progress.
-Matt

bump...................

Looking at the MFRs listed in my market the numbers include both GSI and Gross Adjusted Income. I took a sampling of 10 properties. The GAI usually runs up to 5%. The adjustment is not including the usual expenses such as taxes/insurance/utilities/maintenance/PM....is this allowing for a vacancy factor, or something else?

a few examples
http://www.redfin.com/WA/Seatac/19277-11th-Pl-S-98148/unit-2/home/2079493
http://www.redfin.com/WA/Seattle/9032-9th-Ave-SW-98106/home/2062828

So it seems to be highly dependent- and subjective.
More of a snapshot for a particular time, and particular investor.

But it can be used as a metric for that place, time, and property type.

Dion DePaoli I was looking for a definition of primary vs tertiary markets etc and it seems to involve both population and market activity. This seemed to be a good explanation on that (and property classes), anything to add to it?
http://www.housingfinance.com/asset-management/defining-the-market.aspx

So my understanding is correct:
The figure represents how productive the property is relative to its value.
The three figures (NOI, value and CR) seem to flow in a circle

Rental demand drives rent price
The expected income stream from that will determine what investors will pay for a property

If these two factors are fairly uniform in a given market, would cap rates vary that much?
I've seen posts here which explain CR as an apples to apples comparison for a market...if the driving forces (demand etc) are consistent, is the CR variability simply how the sellers are pricing the property?

Hi Brian Ivey
From up in Seattle
See you around
Matt

I started The E Myth last week. I work on the BOD of one of my (non-RE) professional organizations and it has given me a whole new way of looking at some serious problems we are facing. Easy read and cuts to the chase/no bull.

Wife and I have had the same idea but didn't think of the title going to each child, only to use the property as an investment vehicle. One of the BP podcast guests said the same thing- a property for each child.

Hi Dave
Matt in Seattle
Been out to your area once (ran the Tri Cities Marathon 3-4 yrs ago)
Good luck in your endeavors, will follow along!