What I’m trying to say from all this is that the market is a little frothy right now and you should probably buy for current fundamentals in case the market goes down. 10 years might turn into 20 if you don’t buy something that makes sense today.Feel free to private message me and ask more questions.

In this stage of the cycle, turnkey SFRs are expensive (relative to market fundamentals) as investors have piled onto these assets.

Hi All, here's a potential deal I would love some opinions on considering a fundamental decision must be made for it to be viable.Triplex currently listed at $127kDown Payment: $31,750Gross Monthly Rent: $1,500 (500 each)Estimated Expenses:Mortgage: $500Property Tax: $80Property Management: (10%) $150Water + Trash: $150Repairs (5%) $75Capital Expense (10%) $150Vacancy (5%) $75Total: $1,180 MonthlyCash on Cash return: $3,840 (About 12% return on investment)Property was built in the 1930's and states "could be rented for higher with work/repairs" Average comp rents seem to be around $600-700If I could rent each unit for $600, updated ROI could be up to around 20%... 

It is a mathematical calculation that can be adjusted by changing the inputs.I would look at this point for a strong market fundamentally. 

In fact, I did think that it could be the "capital" part of the payment that is making the difference, but wasn't completely sure (regarding CapEx, my analysis already took that into account while coming up with the cap rate estimate).This is a very fundamental concept to understand clearly if one is investing, yet I wasn't getting it quite right, so it had been bugging me for a while.

I have never owned anything this large, but the fundamentals apply. 

Personally, I think Kansas City and Indianapolis are the two best cash flow markets in the country right now. both cash flow well, but in addition to cash flow, they have strong economic and demographic fundamentals with vibrant economies.

May rebound but the oil business has fundamentally changed in the last 5-8 years so it may not.

However I need a strong agent who can propose fundamentally sound investment SFRs with solid math based on our cash position and risk appetite. 

Marketing to those that are needing to sell is the same regardless of the market condition.Using solid fundamentals has allowed me to be successful in up and down markets through my wonderful time on this planet.