Hello BP Members, Lately I have been thinking that the whole residential real estate game is too time consuming and is super tiring. 

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $50,000

Cash invested: $25,000

Sale price: $125,000

Purchased and did a remodel and flipped it

What ma...

Every market will have investors who are willing to pay less than the market cap and investors who will only buy if it's higher than market, but the average investor in that market is going to pay that cap rate.Large national brokerages track sales and cap rates from those sales and can be a good source for generally reliable market rates, but the reality is that there is no one source with the exact (agreed upon) cap rate.It's very similar to residential in that it's not an exact science.

I have received advise in some meetups that if it is > 4 units, it is better to get a commercial loan than residential loan.

The problem is, population has been flat for 30 years so there is not much appreciation. 8 units being commercial is a different underwriting procedure then residential with the 1% rule, but, you can get a very quick idea of the valuation within seconds with the 1% rule.

I'm just starting my REI journey as well and my local HNB branch was very helpful and eager to help with residential (< 4 door) rental mortgages.

How have you guys in the past on certain deals; determined whether a market that will have a new major employer moving into the area,(an example is the boon for residential and commercial real estate in Sparks Nevada when Tesla opened its huge GigaFactory outside Sparks) a good market for speculative residential or commercial purchases?

Hi Monte, normally for a residential mortgage your "gap" funding (down payment, closing costs, etc etc) need a seasoning period of 30-90 days before the lenders will let you use them.

You have the right idea going commercial, it will get you there faster than residential, in my opinion. 

Did it this last week on two properties: a 10,000 sq foot commercial warehouse and a residential 4-plex.