Purchase Price per door down here in SF

[Jason Brown]

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?

[Robert Lindsley]

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.