How is starting out investing in a small city vs. a large city?

I was lucky to learn some of the ropes from a very large Fargo ND property owner and am almost as cheap as he is in general :p.

One of the properties I ran cashflows on seems initially attractive -- 12.6% cap rate (and 28.9% CCR assuming 75 LTV / 30yr fixed rate loan / 6.0% interest, 50% expense ratio, and assumed rent 12% below rentometer.com's median rent for the area in which the fourplex is located (monthly assumed rent is 2.11% of purchase price)).Though my projected return ratios are attractive (12.6% and 28.9%) on this property, I'm not sure if the magnitude of the return is large enough.

The assessment went from $19,000 to $38,000 after minor rehabbing & he was renting it at the time.Then we got a foreclosure for $21,000 (it was a very large home & was assessed for $48,000).

I have a large number of investors looking for continued opportunities to lend money to exiting and up and coming real estate developers and builders.Hope to talk soon.Regards,John Rubino

But, you seem to be genuinely looking for opinions, so I wanted to add mine.A CPA is good to have, but until you are running a business with lots of ins-and-outs or a huge bankroll, a CPA is largely a reactive tax person... and not even a strategic tax person.

I would find a good mortgage broker / banker or any large volume mortgage lender and explain the details as I have laid them out, and they can give you the details of the loan guidelines and how best to approach all this.Good luck and happy hunting.

By and large internalizing and re-instating in a way that promotes delivery requires doing IMO.

In general, it costs me 50 to 70 cents each time I "touch" these targets with direct mail.There are also ways to carpet bomb areas - such as "shared mail" which can be somewhat targeted and costs only $1,600 to deliver a large postcard to 10,000 addresses.Depending on your budget, you can layer these techniques so you are always coming at the market from several different directions at a reasonable cost for marketing.Best Wishes!

Continue to invest your cash and keep scaling your business.