Purchase Price per door down here in SF

8 Replies

Hey guys I was just curious. I'm currently in the middle of my first deal and I wanted to know on average what are you guys paying per door/unit on your deals?

Additionally for those of you putting in any renovation work what is your final average total cost per door/unit after everything is said and done?

Are you guys trying to keep with the 1% or 2% rule?

I don' think those are valid questions.  Very market specific for price per unit.  Same w the 1 or 2 pct rules, depends on where at.  Just learn what is fair in your market and find a way to get deals.  

I would pick a couple of neighborhoods in Miami and ask from there

I find it's completely dependent on the area grade (A, B, etc) plus what the rents are. I try to stay at $50k or under per door, but that's more of a personal preference than anything. The most important things are that it's cash flowing, and that the ROI, Cap Rate and DCR are acceptable to you.

I'm looking at a property that's 11.5% ROI, a Cap Rate of 9% and a DCR of 1.42 and I'm kind of meh about it because it's not cash flowing enough. Like I said, it's completely a personal preference.

@Pete T. & @Robert Lindsley thanks for the feed back guys.

Yeah I am currently investing in the Miami "Liberty City, Allapattah areas" in SFH and duplexes and I'm trying to feel out just what other investors are seeing as the going rate to get into these properties.

I guess as you say that's very subjective based on your personal investing criteria but I'm do agree that cashflow is king regardless of the price you got into it for.

@Robert Lindsley are those numbers in Mass or in South Florida? If you're finding numbers like that in South Florida, I'd love to know where.

@Marty True That’s in North Florida.  I also have seen really good numbers in CT.  Mass is not a good place for smaller investors right now lol.

I would be interested in something w those numbers, but I would definitelywant to see what they based on, as a lot of times expenses aren' complete or realistic

It really depends on the area.  I don't invest in Allapattah.  The turn over rate is higher and it is consider a high maintenance area.  In stress free neighborhoods the cap rate is averaging 7-8%.   If you find a true 2% investment please include us in the deal.

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.