Good evening BP community! I was making this post to see if anybody has ever bought 8 units plus in any of the Rio Grande Valley cities like McAllen, Brownsville, Edinburg, Donna, Harlingen, Mission, Weslaco, etc. If ...

In a basic sense, this value is derived from applying a cap rate to a stabilized NOI.

This is not the number you use to calculate a cap rate.

If you want to avoid situations where a year's worth of cash flow is wiped out by a cap expense, you will need to build up your portfolio to 10-20 properties minimum.

He's an apartment building owner that knows what a cap rate is and know this is going to require more hands on management (i.e. headaches).

Home's generally sell for $105,000ish.So if you have a value number by direct sales comparison why on earth are you calculating a cap rate on a SFR that DOESN'T even have a sales price yet? 

Today, properties are selling at a cap rate of 2-3% and gross rent multipliers of 15 to 16 and above.

So, I suggest you establish a relationship more slowly, discuss vinila deals, straight sales and purchases, look at a property and pick thier brain as to how they operate, do the show properties well or how they know the market....It's an interview process for you and them, no Realtor wants to work with some flaky investor who has no money, so consider thier side and show them you are a capable operator that can facilitate transactions legally and ethically.

HI Chris we can do investment helocs in the 11-12’s rates, some states have a cap and wont qualify and we can do these with bank statement 12 months only or full doc, up to 75% LTV, interest only is an option, if you want less than 5 year prepay penalty its additional as low as 1 year ppp.If you’re using it for bridge purposes for a project the strategy would be to price it out with little to no prepays so that by the time you’re ready to go live on your project or when its leased up you can payoff the 2nd mortgage HELOC and still get from A to B.These are offered from 200k min up to 1Mil max loan amount.Let me know if you have any questions.

A cap rate is only a snapshot in time remember.