Highest CAP rate you have ever purchased.

Investor/Entrepreneur · Carrollton, KY · Member since 2015 · 9 posts · 0 votes

Curious as to the highest CAP rate on a deal you have bought .... one just fell in my lap that is like ~25% .... It's insane but it's an older guy that just wants to retire said that's what they are worth to him. LOL

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Jay HinrichsBusiness Member

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

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@DJ Carroll POS MHP full of tweakers and low lifes

paid just under 100k 14 spaces one house two apartmetns... putting about 30k into it.

Gross rents right at 7k a month....

the 30k includes rehab of house and apartments and new metoring system so tenants pay for water themselves and haul 3 trailers to the dump...

Once stabilized this is a west coast ( Eugene Oregon) park it will sell for mid 300 s I am thinking

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Jon Klaus
Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
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I don't use cap rate on SFRs, but I bought one for 17k that needed little work and eventually rented it for $900 per month.
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DJ Carroll
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Investor/Entrepreneur · Carrollton, KY · Member since 2015 · 9 posts · 0 votes
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Originally posted by @Jon Klaus:

I don't use cap rate on SFRs, but I bought one for 17k that needed little work and eventually rented it for $900 per month.
Yeah you would have been prolly 40%+ on that one lol
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Jon Klaus
Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
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If only it was scalable.
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Patrick Gleason
Investor/Construction Manager · Boston, MA · Member since 2015 · 38 posts · 11 votes
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My current baby I bought @ $178k all in. She brings in $3900/mo in the warmer weather. Theres two things I hate about NE.. 1. Snow Removal 2. Heat bills
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DJ Carroll
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Investor/Entrepreneur · Carrollton, KY · Member since 2015 · 9 posts · 0 votes
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Originally posted by @Patrick Gleason:

My current baby I bought @ $178k all in. She brings in $3900/mo in the warmer weather. Theres two things I hate about NE.. 1. Snow Removal 2. Heat bills
Damn dude congrats! That's legit!

This one I'm looking at is an investor retiring so I'm hoping to pull it for about 245k
12 units bringing in about 4g NOI
Then debt service will only cost me about 1800 a month ... :)
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Patrick Gleason
Investor/Construction Manager · Boston, MA · Member since 2015 · 38 posts · 11 votes
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Thanks bud! What type of construction is the 12 unit? I've been thinking about scooping one up but the replacement cost of plumbing and electrical scare me.
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Steve Vaughan
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
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Small town 97-yo brick 10-unit mixed use for $250k, Had some value-add ($15k + my labor) but rents are about $4200/mo. At purchase my CAP was about 16%.
Nice thread @DJ Carroll and congrats to all on some fabulous deals!
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
11y
@DJ Carroll POS MHP full of tweakers and low lifes
paid just under 100k 14 spaces one house two apartmetns... putting about 30k into it.
Gross rents right at 7k a month....
the 30k includes rehab of house and apartments and new metoring system so tenants pay for water themselves and haul 3 trailers to the dump...
Once stabilized this is a west coast ( Eugene Oregon) park it will sell for mid 300 s I am thinking
Podcast Guest on Show #222
JLH Capital Partners51 Review
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DJ Carroll
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Investor/Entrepreneur · Carrollton, KY · Member since 2015 · 9 posts · 0 votes
11y
Originally posted by @Steve Vaughan:

Small town 97-yo brick 10-unit mixed use for $250k, Had some value-add ($15k + my labor) but rents are about $4200/mo. At purchase my CAP was about 16%.
Nice thread @DJ Carroll and congrats to all on some fabulous deals!
Very cool! Yes this one is a little older as well but I think it's right there in line with your numbers! SWEET!
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DJ Carroll
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Investor/Entrepreneur · Carrollton, KY · Member since 2015 · 9 posts · 0 votes
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Originally posted by @Jay Hinrichs:

@DJ Carroll POS MHP full of tweakers and low lifes
paid just under 100k 14 spaces one house two apartmetns... putting about 30k into it.
Gross rents right at 7k a month....
the 30k includes rehab of house and apartments and new metoring system so tenants pay for water themselves and haul 3 trailers to the dump...
Once stabilized this is a west coast ( Eugene Oregon) park it will sell for mid 300 s I am thinking
Very Nice! This one is in a working class area - not sure on the tenants yet although I do know they are all long term. I think I'm going to buy it - wait 6 months and then re-list it at about a 12% CAP and make a nice profit.
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Account Closed
Investor · Honolulu, HI · Member since 2013 · 3k+ posts · 1k+ votes
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Originally posted by @DJ Carroll:

Very Nice! This one is in a working class area - not sure on the tenants yet although I do know they are all long term. I think I'm going to buy it - wait 6 months and then re-list it at about a 12% CAP and make a nice profit.
Good luck with that. That's like me saying I'm buying a house at $100,000 and expect a profit by listing it 6 months later at $150,000. Easy money.
What makes you think the market won't be buying your NOI at 15% six months from now. Hell, how do you know you aren't buying at lower than market cap rate NOW?
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Bryan C.
Investor · Spokane, WA · Member since 2014 · 733 posts · 155 votes
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Originally posted by @Jay Hinrichs:

@DJ Carroll POS MHP full of tweakers and low lifes
paid just under 100k 14 spaces one house two apartmetns... putting about 30k into it.
Gross rents right at 7k a month....
the 30k includes rehab of house and apartments and new metoring system so tenants pay for water themselves and haul 3 trailers to the dump...
Once stabilized this is a west coast ( Eugene Oregon) park it will sell for mid 300 s I am thinking
Damnnnn @Jay Hinrichs!!!! How did that one fall in your lap?
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
11y
@Bryan C. partner brought it to me. I rarely find anything on my own.. except subdivisions etc.. other wise I share the wealth and let those folks do the pounding of the pavement
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