All Forum Posts by: Nicholas Sanfratello

Thanks Brian and greatly appreciate your perspective.  In terms of your comment "a lot of investors you may be competing with are goign to break even or even have negative cash flow initially".  Are you referencing more A and B class type neighborhoods that may drive a greater appreciation?  

Hi Everyone, I'm a new investor and have begun researching properties in a couple remote markets that I'm running through calculators. In my research I've seen that I should target at a minimum a 10% CoC return after accounting for PM (10%), Reserves (5%), Repairs (7%), and Vacancy (3%). Right now the mortgage rates I'm being quoted for a 20% down DSCR is 7.75%. That said I haven't come across many places that are meeting this rule unless I start dipping into D class neighborhoods which I've been advised to stay out of as a newer investor. So my question is it realistic to expect a 10% CoC return after accounting for the above (i.e. PM, reserves, etc) in a C-class and above neighborhood? Essentially I'm trying to figure out whether that target is unrealistic or if I'm just not looking in the right markets.

Thanks in advance for the advice!!!