All Forum Posts by: Chris Risi

Hi all,

Im trying to get a feel for how popular 1031 exchanges are for small multifamily. Im sure it all depends on the market, but Im really just curious to see if there are better categories of real estate for 1031 exchanges than others. Like small multifamily under $1M vs a larger multifamily 50+ unit for example. Or are 1031s popular across all property types pretty equally?

Thanks

Chris

Hi Kyle,

Thanks also for your info! Thanks for taking the time to explain. It definitely helps. I appreciate it!

Thanks for the information and taking the time to respond. So, let's say I know the NOI of a property and want to use a cap rate to derive a value. How do I know what cap rate to use? Is it just basically what investors expect for a given area?

Hi all, for some reason cap rates confuse me. I was recently told, the lower the cap rate, the higher the property value. For some reason, I always thought the higher the cap rate, the more valuable a property should be. I know the formula is NOI/Market Value= Cap, but really not sure what investors are looking for in terms of cap rate?

Can someone help me understand, maybe with some exacmple numbers? I have a couple properties I would like to invite investors to buy into, and want to present them with cap rates/etc.

Quote from @J. Mitchell Bernier:

My vote will continue to be on markets located in the Midwest and Southeast, that are 2nd tier and 3rd tier cities. 

Affordability will continue to be an issue for your larger markets and much less competition from the big players in smaller markets. 

Honestly, I am not a fan of anything in Arizona now. Disclaimer: never invested there and only visited Phoenix one time, but I would welcome everyone to read about the water issues that some communities are having and recently a development was put on hold because they have yet to come up with a way to insure water for the homes.

I think Phoenix/Scottsdale is still expensive, but I do believe it in az a long term great investment. I was born and raised there and have 6 rentals. 1 LTR and 5 that are STR/MTR. Despite what some articles say, arizona has a pretty good water management system. More businesses keep coming in. There is a $1B development going into Scottsdale right now! Apartment/condo mix from one of my favorite Builders...The Optima people

hey guys. I still don't think LTRs really work too well right now in Phoenix, given still high prices...i have several STRs right now. But been trying to go more Mid term, like 30 day+ rentals. Currently has been working, but it is also prime season, so i'll see how its going as we go into Summer...

Thanks for the detailed layout of your plan! In general, you always hear people, escpecially on bigger pockets talk about financial freedom, meaning have enough rental income to at least cover all of their life expenses. But no one every really talks about this topic. At what point can you start taking this as income? Hence the forum question..

Thanks everyone. I know it's more opinion based...but didnt know if there was an "industry standard" for it. Like 6-12 months depending on property condition, etc...

Hey All,

I have a few STR/MTR properties in Phoenix and I have never touched any of the rental income. Have just kept it in the bank accounts. Anyone have any opinion on when its "ok" to start using profits to pay for some of my personal expenses? How much in reserves should I have?

Thanks!

Chris

Investment Info:

Small multi-family (2-4 units) fix & flip investment in Phoenix.

Purchase price: $375,000
Cash invested: $100,000
Sale price: $665,000

Complete remodel on single family home with detached casita in the heart of Phoenix