Cash-flow expectation as interest rates increase
Hello BP,
wanted to have your insight when you guys run your numbers and also how you adapt as interest rates are on the rise.
I tend to follow @Brandon Turner numbers (100$/month/door & 12%CoC for apartments). And a DCRS of at minimum 1.3 (bank loan requirement).
- Do you guys follow the same requirements?
- Do you lower your CoC and monthly CF as interest rates increase or do you look for a better deal?
Most of the local banks offers me a 20 years/6%ARM (not a fan of ARM...) so it makes it tight to reach my expectations. And in addition, sellers know there is demand for MF so they jack up their selling price and i usually end up with a, what it seems to be, a low ball offer all the time.
Thanks for sharing your thoughts.
To our success.
CH