All Forum Posts by: Carlos Ptriawan

@Amit M. : Amit is right. I realized the Bay area house is no longer a "house" but ta icket for retirement. What people doesn't realize is at 2020, home appreciation is running faster three times than wage growth. Nationwide. Just with this information alone, I'm forced to buy real estate. With bay area house I no longer need 401k,roth IRA,529 or college funds.

So it's sort of like this: Bay Area home is for retirement/family safety net, while W2 job and Out of state investment is just to pay the bills and PITI :)

Hi Krystin, your dilemma is very simple to be answered by some logic.
-median Appreciation in the bay area is 6-7% or a minimum 0.25% every month, while gov guarantees you to pay the mortgage with a sub 3% rate for 30 years (no brainer).
-This area can supply you between 2BR $350K condo or 3BR $3million SFR within one-hour driving range. The choice is yours.
-If your mortgage is $2000, you can purchase 5-6 property cash-flowing OOS 9% cap rate to cover your mortgage
- The actual question lies in how much is your purchasing power as downpayment for primary
and/or OOS investment
- Most likely, your bay area house will cover your retirement in the long term while OOS property pays your bill.

Those investors that's wanting for 08 crash is a very lazy investor that I'm sure even if there's crash tomorrow, they still don't buy because they actually never invest.

I like when someone said there's deal anytime anywhere, I found the same.

Hi Spencer, You don't buy a house with 0.67 rental value in Memphis. I bet that's class A property. That's California number. For Memphis your target is 1.0 or 0.9

I already give you straight number from one of the sponsor above that has multiple full cycle exit as benchmark. The only way out for syndication is the same as holding REI: appreciation and declining cap rate.

best question is sponsor track record and the tenant vacancy rate in comparison with DSCR ratio

I give sample of a good sponsor here with 20 years track record in multiple class B apartments located in CA,AZ and NV.

Typical Net CoC: 7%
Typical ReturnOnEquity: 40-100% over 3-4 years.

When you see this number it seems amazing but when you invest directly by purchasing direct SFR, you could beat this number easily as they invest in a highly appreciated market.

@Dennis Wayne:

Well by that standard the Same could be said on your own properties and your returns would be well over 20% so that’s still not very exciting

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I like your reply here. Agree, basically when you invest in syndication, you're investing in the job market of that particular area economy and its future appreciation.

@Dennis Wayne : It's what it is. The averate return these days is not even 8k out of 100k investment, the real number perhaps closer between 6k to 7k.

Honestly you could achieve this number is by investing at CEF or dividend REIT in stock market. yea it's not too exciting. The investor mostly already happy if they can make 10% :)

You could do the calculation yourself:
Typical class C CoC is 6-7% when 100% occupied (depending on market).
Depending on location, cap rate is either 5% or 8%.
Assume appreciation is +6%,+3%,+3%,+3%,+3% for every year. Assume 1% cap rate decrease by year 5.
Add value-add and assume rent increase for year 2 or so.

Now calculate your return at year 5. That's your number. Reduce 20% when occupied is lower.
I bet 1.5 Equity Multiple can be achieved.