All Forum Posts by: Vincent Chen

 If that is the case, then it is platform issues which investor can not predict or handle.

Just curious that even if you still have good cash flow, how is the equity looks like? Like I said, most likely you need sell to investors not retail buyers. So if overall the cash flow not good and cost of finance high, selling price need to adjusted to that

@Ken Boone Thanks for clarify.

I got your situations, that is what I mean that sometime it is hard to tell/attribution/underwrite which one will stand out for competition. Even almost everything is the same, still can have huge difference. You can not tell which one really works.

And again, any solutions in tend to make performance better cause effort/capital, may or may not work as well.

So it is good time to think about which one really worth holding and holding for how long.

@Ken Boone It is interesting to your situation.

I think it comes down to local market, cabins are all investors and capital driven price. Yes, people go to Smokies for sure, but ownership of cabins are investors seeking returns, if return flat or decline, capital driven will be lower for sure. So my thought is, the price might need to be lower to make the return make sense.

When it comes to competition, it is kind of really hard to stand out for all the investors, including views, services. Competition cause more effort and more input (marketing, operations, etc) and drive return even lower.

So right now smokies area need to be really care for the return perspective and exit strategy, most likely you can only sell to investors who seeking returns, which is around or less than bond.

@Immanuel Sibero When I say normal, I mean cap rate, interest rate and price has to be in reasonable relationship, for instance, if interest rate is 6%, cap rate can not be 3%. And to make it financeable, at least it can cash flow after expense and mortgage, and meet DSCR ratio for 1.2 or higher. Do the math, the cap rate has to higher than interest rate to make it happen.

And expected growth of the rent is much lower and expense is much higher, so consider the NOI decrease, and cash flow depressed, the cap rate will even higher, maybe cap rate 7~8% to just make the deal make sense.

Not experience investor ,just from finance backgroud

Current market condition is clear, the interest rate will going up for whole year, and most likely all the fees for apartment buiding (tax, insurance, etc) will go up and rents will flatt or decline, so NOI is going down for sure.

The only way to make it financeable is to increase the cap rate, down the price to at least meet the DSCR ratio (base on the high interest rate), so this is repricing process. But we do not see this happen yet, so when does it back to normal?

The math showed the equity is around 400k?

And what cap rate do you calculate the value right now?

Just curious about the market right now

Good Story, how can you get all the leased done and add the value?

@Taylor L. Agree with that, but in the day-to-day operation, how much should we involve? When to increase the rent, how to execute the process and how to make sure the expense reasonable, maintenance or Capex?

@Taylor L. Totally agree with that, but what is the best practice to manage the property managers? What is best involvement should the investors get into the multifamily investment?

@Kurt Calderone Would like to know what revenue do you have for this high end STR? Like 1.5 M house, can you get more than 250k revenue?