I might end up with $730k after cap gains if I just walk away.So very fed up with the banks.Bob BVenice CA

I might end up with $730k after cap gains if I just walk away.So very fed up with the banks.Bob BVenice CA

IMO the best bang for your buck will be marketing. 2k in letters could gross you 20$k in fees. 

. $2939                                                               Vacancy (15.5%) $6878Maintenance $1200                                            Net Income  $37,212.00Utilities $5400Total Expense  $12,867.00NOI $24,345.00          Cash flow $5,067.56              Cap Rate 8.6%COC 19.77%           The thing of uncertainty is 1.

My wife has recently put in several offers for clients looking for MF in Phoenix and there is a lot of competition to get properties, cap rates are compressed right now.

As part of my research/practice I've been using the method described in The ABCs of Real Estate Investing (great book BTW) to determine prices using the formula Purchase Price=NOI/Cap Rate.

Right now retail strip centers is what I am seeing for value add and stabilized at higher cap rates.Multifamily is tapped out for the most part.

But yeah i didn't even think of the vacancy and the cap exp.

For example initially during due diligence, the HOA rules/covenants allow rental without any cap. so investor happily purchase it as a rental property. 

We also had a bunch of assessments which really hammered the cap rates.