All Forum Posts by: Michael Reisman

From what I’ve seen, larger apartment complexes have much lower cap rates at the moment. If you want to find good deals for these, it is all about the relationships you have with various brokers. Websites will not help you for the most part, at least given the current market conditions.

Hey Jason, there are benefits to both single and multi family. As you have already discussed, multi family can help curb the cost of vacancy. However, from what I’ve seen single family generally has lower turnover. I’d focus primarily on the numbers; if you have a reliable PM and are in an area where the demand for housing is high you should be able to fill vacancies quite quickly.

Hey Keith, welcome to the forums! Interest rates matter a whole lot in Real Estate, as it is essentially the cost of money and most people need to finance the purchase of rentals. Interest rates are historically low right now, fueling the high demand in most of the country. I think it is a great time to refinance now because of this. Unless you refinance into an ARM (adjustable rate mortgage), your new loan should be locked at a low interest rate. As always, be sure to clarify with the lender. I hope this helps!

@Robert Berry

Robert, make sure to assemble a trusted team. It is important to have a reputable professionals so you don’t get screwed investing out of state. Good luck!

Michael, just make sure wherever you go you have assembled a good team of contractors, PMs, etc. This is vital for out of state success.

Congrats on your first post Tony! If you are to invest out of your own state, make sure to assemble a good team. Reach out for reputable contractors, property managers, etc.

Definitely check out the website city-data.com. It has a lot of statistics you can view for a particular city. In terms of picking a state to invest I recommend looking at landlord tenant laws, crime, growth, and price point to entry. It is also depends a lot on your goals, are you looking for cash flow mainly or appreciation as well. The last thing I need to recommend is making sure you have your team in place, that is crucial for out of state investing. Reach out to find reputable contractors, property managers, etc.

There is no right answer, it depends completely on your market and your goals. Purchasing property with all cash should decrease your CoC return significantly, given you are putting more cash in initially and with financing being so cheap right now. You also have to take into account the equity you build with financing as the tenant pays down the loan.

Sometimes you get stuck on analysis paralysis and you just gotta step in. The numbers won’t always work exactly how you want them too, which can be expected with the current market conditions. Just remember, with Real Estate you’re not just getting cash flow but also appreciation and loan pay down from tenant increasing your equity in two ways. Not to mention there are many tax advantages as well.

Yes 100% if the numbers worked. As long as the numbers work I don't care who I'm purchasing from. Just make sure you have the necessary funds for repairs and get an inspection report as well. You can always make the contract contingent on how the inspection turns out.