All Forum Posts by: Shaheen Ahmed

Hi all, 

I'm looking to invest in this area because it's close enough to where I live (Orange County).  My mortgage broker is telling me this is an up and coming area that is low risk, high reward potential.  After visiting the town and 7 properties, I'm convinced it is a quiet town and a great place to raise a family with affordable rents.  The houses are in the low 200's, so they're still relatively affordable.  I wanted to get any opinions or insight from members here and if they have any experience dealing with this area, thank you.  

 there're already so many deals (eg: cap rate 8-9%) these days....in san francisco market 5-9 unit MF dropped like 30% from last purchased price. If you purchase with longer term fixed debt you may see some values. 

I kept reading some apt is operating with DSCR 0.61x ; I bet there're professional buyer in line willing to buy those asset with large discount LOL

 there're already so many deals (eg: cap rate 8-9%) these days....in san francisco market 5-9 unit MF dropped like 30% from last purchased price. If you purchase with longer term fixed debt you may see some values. 

I kept reading some apt is operating with DSCR 0.61x ; I bet there're professional buyer in line willing to buy those asset with large discount LOL

Hello,

We were considering buying MF unit <4plex ideally > and were considering Arizona or Nevada as potential options. I wanted to see if this group had opinions on:

1. Which is the stronger market, with a relatively attractive price point for entry.

2. Are there any particular areas folks would recommend ?

3. Any referrals given we would be out of state, and would need to depend on a partner for both buying as well as PM services.

Thanks a lot for your time and inputs!

If you are looking to buy based on NOI (the income stream) then you should educate yourself about cap rates. If you are buying a $50,000 NOI in CA at a market set cap rate of 6% then the market is paying $833,333. Now if you want the same NOI in say Indiana (thousands of miles away from you) at a 12% cap you'd pay $416,667. Is that a deal? Which property has higher demand? Why would you think the higher cap rate market is better when the market is actually paying MORE in the lower cap rate markets?

Ease of management?  CA, hands down!

Hey @Shaheen Ahmed

Investment Real estate agent from the Philadelphia area here--

Philly is a great spot for rent to value. Very hot market, with tons of renters that are looking for places to live. Generally speaking, getting a cash flowing rental that fits the 1% rule isn't much of a challenge. Are you looking to target specific renters such as LTR/STR or student rentals?

I would suggest visiting Baltimore yourself to determine its potential. It is a challenging market to manage in and predict its future. I think there are other similarly priced markets that are much more appealing.