Investment Price & CAP rates?
Hi everyone,
My name is Ian. I am new to biggerpockets and also to real estate investing. Nearly 40 and need to get serious for my retirement. Hoping to be able to make some good investments over the next 20 years.
I watched the video by Brandon Turner on the 50% rule and it seems I was lucky to do so as I may of made some big mistakes? I was planning to buy a multifamily home in my area but the CAP rate would be about 5% around here and it seems (I do not know if it is true) from his figures you can get up to 15% CAP rate around the US. In the UK where I am originally from in a good area with good rental ability the CAP rate is between 5-6%.
Now my question is as a novice investor what do I look for to best build a stable portfolio?
Do I start with 3 or 4 low value homes ($100,000 ish) out of NYC where I am from or is it best to invest locally where there may be more capital appreciation but where the CAP rates are lower and property prices are higher?
What CAP rate should I be aiming for if I don’t want to sell the houses and Just want to obtain a lasting income from them long term?
I appreciate the answers will be different as there probably will not be 1 perfect scenario but there may be things I should not do that everyone agrees on. Plus I would like to know what you would do if you were investing for the first time in 2014.
Thank you all for your help in advance