This is a returning topic around here.

Recent article in Dallas business journal states Dallas is among the worst markets for flipping at a paltry 29% gross return on investment for the past quarter.

Third, share your business plan with them and the return you are offering.

I'm thinking it's a good investment due to average rent being around $1200-1500 in this area for 2br apartments this unit has 4 its list is $550k while I can't find a single family under $320k I plan on occupying one unit so after removing one unit from the market I'm still at $3900 and with not rent if my own which will easily cover a mortgage on the property and still make some extra income and give me the ability to build up capital for future property's

I've determined from REI friends that are investing in northern Colorado (Windsor area) that this market is not where I'd like to start since they are primarily focusing on appreciation returns and not passive income.I've looked at areas out-of-state (NE Ohio, Missouri, TX, FL) to start but that's about it.

I've determined from REI friends that are investing in northern Colorado (Windsor area) that this market is not where I'd like to start since they are primarily focusing on appreciation returns and not passive income.I've looked at areas out-of-state (NE Ohio, Missouri, TX, FL) to start but that's about it.

If your intention in investing is to maximise your returns inform your tenant that they are below market and that you will be raisin rent 400/month in 60 days.

learn about 1031 tax deferred exchangescomplete you financial package - 3 years tax returns P&L - real estate portfolio, credit scoreexpect to be rejected by lenders and other W-2 employees - qualify lenders, bankers, mortgage brokers - ask what products they have - see if you qualify for themlook at 20 buildings before offering on any - know the SF dollar cost - keep a journalmail lots of letters (be professional NO yellow childish communications) to owners of apartment buildingsUnderstand what a CAP rate is and how to get to it - fill out your  commercial APODVerify -verify - verify all financial data given you by sellers - sellers are liars (so are buyers) trust NO One!

This is one of the key components I have learned from developers 30 to 40 years into the business versus my 14 is to assess what it is you are doing, timeline and risk to get to the return you want, and then decide if it makes sense to take on the risk or structure an exit a different way ( or not do the deal at all in any way,shape,or form and move to the next property).  

So part of our investment thesis is the continued growth of a neighborhood I know is on the upswing.Obviously with the repairs needed, and the fact its not acceptable for occupancy, there is a major opportunity for forced appreciation, and the current rents would be all but impossible to use to do any calculation of returns.