@Hadar Orkibi thank you for a quick response. It appears that Jax market is very hot and it is very hard to find deals for a newbie like myself. Anything less than 10% CAP begs a question is it really worth investing in RE compared to the stock market, not considering the appreciation of the RE investments and favorable tax laws at this time.
@Charles Soper for my first MFR I would rather be safe than sorry, which means lower CAP rate for a safer investment. I plan on coming down to Jax in the middle of July and looking forward to networking with local investors. This will be my first step in meeting other investors, very nervous and excited at the same time.
@Matthew Miller I agree with you 100% on buying C class with 6% CAP and have a lot less stress, compared to a D class 8 or 10 CAP and a headache. I have 2 young kids, i don't need more stress. Cash flow is important but not everything. That just means i will have to get couple extra properties under my belt before i can leave my current job.
@Evan Greenfield thank you for your contribution to my post. I was not aware that property managers set rates based on property class or location i thought it was a flat fee per door or so. I learned something new already. Thank you!
@Russell Brazil this is a great way to look at the CAP rate. Long time ago in my investments class at UNF i was taught that the greater the risk greater returns on investment. This is also true for real estate.
Thank you everybody for sharing your thoughts and experiences.
Looking forward to networking with you in the near future.
Thomas P.
