All Forum Posts by: Robin J.

Here's v2 of this spreadsheet. Once again, using fake numbers, but this time I added several other metrics that people told me that they wanted to see (cap rate and cash-on-cash return).

Sample Analysis Output of Utah Rental Properties

If enough people are interested in this type of output, I can actually work on operationalizing and updating this spreadsheet on a regular basis (e.g. once a week).

Hey Josh! Yes definitely, would love to connect. I'll DM you separately for any follow-ups

Thanks Race! Will PM you directly.

Hey Trevor! Would love to chat and figure out where you need the most help! I'm also from a tech background, and that's where I'm looking to add value.

Are you looking for more help on the lead gen and the deal execution side? Curious to get more info on what would be most helpful for you. Feel free to PM me at any time.

Hi all, 

I'm trying to get smarter on the Provo, UT rental market as I'm a new out-of-state investor. As part of this process, I'm planning on doing some research into potential properties and look into the high-level metrics that I care about (purchase price/rent, cap-rate, etc.) to help filter the list of potential properties to look into.

I'd love to get a second pair of eyes/opinions on my research to help validate what I'm seeing. In return, I'm happy to share out my data to anyone who's interested in getting regular updates on my data and research. I'm also hoping I'm picking the right metrics people care about... if not would love to learn what metrics people prioritize and prefer.

See sample output below (note this is just illustrative sample output and does not reflect accuracy - this will get better once I actually dig into the numbers and validate them). I'd love to know how I can make this helpful for potential people who I share this data with. 

https://drive.google.com/file/...

+1 to what Arlen Chou said above. You have a golden goose. KEEP IT - especially if you can unlock the equity via refinance/HELOC. I’m personally a believer in the longer term value of Bay Area properties. There may be some correction or there may not be in the next 5 years, but your cash flow positive property assets should allow you to weather that storm and keep riding the appreciation gains in the long run. That being said, everyone has different investment goals and risk tolerance. Are you looking to build longer term wealth or immediate steady cash flow today? That should inform your ultimate decision

Hi BP,

I haven’t done this but I was wondering for investors who reach out directly and work with seller agents in dual representation, what pieces of advice or stories do you have?

I ask because I’ve heard from other investors that sometimes going w the listing agent may help you better understand the seller motivation and what it would take to present a stronger offer. However, the downside is that you don’t have the incentives aligned with your representative in the transaction and may not help you get the best price.

I’d like to explore this option at some point, but as a newer investor I don’t have the expertise just yet. What would you do if you were to explore this option and how would you prevent yourself from being burned?

@Marcy Moyer love the strategy and wish you continued success. I feel like for California investors, we don't quite see the same cash on cash returns in these premium locations. My beliefs are that if I invest in a strong location (great schools, high wage earners and companies, safe neighborhood) with limited supply (especially in the Bay Area), expecting some appreciation over the long run is not TOO speculative. Obviously I won't rely on appreciation to bail me out in the short-term and I'm okay with a longer term horizon buy and hold strategy with these investments. The returns will be driven by debt pay-down and longer-term appreciation.

@Jonathan Pflueger 

My endgame is to build wealth over the long run and I agree with you on the Bay Area being suited for this type of play. My belief in the Bay Area is driven by continued growth in population driven by tech company growth, large demographic/population of high wage earners, and that the Bay Area will remain the primary tech hub and attract out of state people.

I don't plan to sell in the next 5 to 10 years, and I am willing to hold for the long-term. That's why I'm also attracted to owner occupant strategies, where I have the option to send my kids to a good school if I don't move out (since these premium locations have great school ratings).

I’d still like to hear your thoughts on the right metric to track here? It seems too unsophisticated to just look for breakeven cash flow given that this doesn't allow you to compare investments across different properties or even other investment classes (e.g. stocks, notes, etc.)

Hi BP,

In California (my local market), I'm having trouble deciding which metric to use for buy and hold investments and what I consider a "good" percentage for metrics like IRR or Cash on Cash return. I'd like your input on what metrics you use and what % or number you look for in your investments.

In summary:

1. What are your key metric criteria's you set for yourself (what's the number on CoC, IRR, etc.)
   
   • I've been looking at IRR as my metric given that Bay Area does not cash flow well. IRR seems to be the better metric since it accounts for the appreciation/value-add you get in the event of a sale
2. How did you determine for yourself the right number? Do you lower your expectations or switch markets if your market doesn’t meet this number?
3. Is buying at a discount a must for building instant equity on the buy? In the Bay Area, MLS properties usually go 5-10% more than listing price.

Hey Alameda BPers,

I'm looking to get more knowledge of rental rates and rules in Alameda. I was wondering if anyone could point me in the right direction to learn the following:

1. Rental Market Competitiveness

• How do you determine how much excess demand, aka renter competition, there may be in a given location? Is this something I need to call around with property managers and listing owners to get a sense of?
• I know market comps and historical trends based on online information (Zillow, Craigslist, Rentometer, Rentjungle), but unsure if properties would be filled quickly at the listed market rates
• How to measure demand for single family house leases vs apartment unit leases? Is this something I need to talk to local owners and property managers about?

2. Rent Control Rules

• Does Costa-Hawkins apply in Alameda city? If I'm an owner occupant of a SFR or a residential MF, would that allow me to circumvent rent control regulations and forego the need to get city approval for any rent increases >5%?
• Reference link: http://www.alamedarentprogram.org/rent-increases-a...

Furthermore, if there are any other Alameda natives and/or owners, I'd love to get in touch and talk about our market. Many thanks in advance!