Welcome to BP @Dennis Gill Find and network with local investors using find feature!

Now some banks might have a total lending cap for any one individual.

Maybe you go after a local single NNN or a small strip center at a high cap to give you the cash flow you desire.I haven't looked at multifamily in awhile.

Welcome to BP @Jane Dunn Find and network with local investors using find feature!

The value of commercial real estate is determined by your Net Operating Income and Cap Rate for the area, not comparables.We purchased a 37unit in 2009 with $150k down. 

So with all this talk about cap ex I was wondering what you thought about using wear resistant materials in rehabs. my business model is to by extremely distressed and do full rehabs.

If your project is coming in under a cap rate spread of 200 bps (this is what my firm uses in NYC so I'd assume mass market should be much higher spread), then ditch the project.

Right now cap rates are good and debt is good on multi NNN strip centers for instance.

This is in Richmond, VAI have already paid a deposit of $1000 on this property but after running the numbers through the calculator on BP and accounting for 10% vacancy, 15% Repair & Cap EX COMBINED and paying for water at $50 this property comes in at 6%-8% cap rate and it seems like it has the potential to be a money pit or at least no returns.My question is am I being overly cautious or should I cut my losses on this one and back out of the deal?

Welcome to BP @Juan Perez Find and network with local investors using find feature!