All Forum Posts by: Daniel P Willis
Daniel P Willis has started 8 posts and replied 68 times.
Post: How does the Cap Rate Work

- Investor
- Rexburg idaho
- Posts 68
- Votes 18
@Ned Carey One more thing if you have time, or anyone else for that matter. When your using the biggerpockets calculator, why does it ask you for that Cap Rate before giving you the results, how does it change the results? Shouldn't it tell you the Cap Rate?
Post: How does the Cap Rate Work

- Investor
- Rexburg idaho
- Posts 68
- Votes 18
@Jim Sakalis Thank you for answering so quickly, I appreciate the web page.
@Ned Carey Thank you for answering, I found a blog with the mechanics of Cap Rate. If I understand it correctly you figure out your cap rate and it gives you a percentage of profit if you paid cash for the property, just like you said. But what if you don't pay cash, do you take that percentage and adjust for the projected mortgage to decide what to pay? Is there a reason you can't take into account the mortgage, it would seem that it would be more accurate? Thank you
Post: How does the Cap Rate Work

- Investor
- Rexburg idaho
- Posts 68
- Votes 18
So I have a single family home and a trailer that I rent out and my wife and I are looking at purchasing a triplex or quad. How does the Cap Rate work and at what time does that become relevant? I always try to learn as much as I can before making an investment and most of the forms that i've seen just say that cap Rate isn't something you have to worry about until its a commercial property. Why is this, why doesn't it matter and how does it work?
Any help is much appreciated, I would also like to know your experience with using Cap Rate and how it helped you in your investment, if its not to much trouble.
Thank you.
Post: Fair estimate for a maintenance cost on a turn-key property

- Investor
- Rexburg idaho
- Posts 68
- Votes 18
Awesome deal!
Post: Student loans or investing?

- Investor
- Rexburg idaho
- Posts 68
- Votes 18
@Jamir Burney I would read"Rich Dad Poor Dad" its a great book that teaches you about how money works. If your serious about investing and take the time to learn and study how to make your money work for you, I would say that investing would be a far greater choice in the long run. However if you don't study and don't learn about the investments your planning on making than your going to be a little unsure about your investments, which is a problem because you need to know enough to get you through the tough times. I think that the answer depends on you, if it were me personally I would save your money in an account and read "rich dad poor dad" to start, and than read as many books as you need about on the type of investing that catches your interest. Than if you like the idea of investing I would give it a shot, if you don't like the Idea of investing right now in your life than you just saved yourself a lot of heart ache. I'm not being discouraging at all by the way, I have two properties and I love it more than anything else i've ever done so I completely agree with investing, I think there is nothing out there better. But, everyone else on this webpage loves investing also which means your answers might be one sided, its important you find what you like and what you are ready for. Good luck man and have fun!!!
Post: Fair estimate for a maintenance cost on a turn-key property

- Investor
- Rexburg idaho
- Posts 68
- Votes 18
@Ray Lai I'm not super experienced with real estate as I only have a couple properties so I would get some more opinions, but one thing to keep in mind is there is a difference in repair costs and CapEx. New roofs, siding, and other large ticket items fall under CapEx (Capital Expenses) which is an entirely different savings than planned repair costs. Another things to remember is the age of the building makes a difference as well, so I would look into how old it is. The reason why is maybe it from the 1900's and they did a complete cosmetic overhaul and it looks amazing, but what about the pluming, wiring, foundation, roof, supports, heating and air conditioning, and other things that don't have anything to do with the way it looks but might have a little to do with your bottom line. Like I said, I would get the opinions of other more experienced investors. I would say this though, no one is going to care more about your bottom line and your family than you, so if your numbers don't add up to what their telling you than I would figure out why because ether their wrong or your not doing your calculations right, either way your the one that will suffer not them. Good Luck man, let us know how it goes.
Post: Property Manager Rented My Property W/o Me Reviewing the Lease

- Investor
- Rexburg idaho
- Posts 68
- Votes 18
@Sunny D. I would agree with @Michael Herr on this one I think, I expect my PM in idaho to handle all the leases and agreements, thats why I hire her is to take over the workload. I do ask if there will be rent increases, and if there won't be I find out why, but other that that I kind of expect her to handle all the paperwork and inspections on here own. With that being said my PM always keeps me informed of all maintenance changes and all concerns the tenant has but usually just to let me know what the issue was and the solution they have. Good luck, I would be nice on this one because you wouldn't want to cause rift between you and a good management company over a simple misunderstanding.
Post: New Hampshire Investors!!

- Investor
- Rexburg idaho
- Posts 68
- Votes 18
@Bradley Tetu I think that a BP meetup would be a great idea, I just moved here from Idaho and it would be nice to meet up with a few people and see how things work down here and just meet some new people. I'll keep checking in on the form to see if were able to set something up, keep me posted.
Post: Tenant Refuses Stove - threatens to withold rent

- Investor
- Rexburg idaho
- Posts 68
- Votes 18
@Josh Polston I agree with the people that are point out the fact that they are paying 1300 under current rent, thats $15,600 a year. If it were me I would let them leave, even if i have to evict them, your talking about a lot of extra money when you increase the rent. It might be a short term pain in the butt but a long term gain, plus, if you give in now what are they going to do next if they know all they have to do is threaten to withhold rent. I don't know, good luck.
Post: Pitbulls as service animals... I don't want to get sued!

- Investor
- Rexburg idaho
- Posts 68
- Votes 18
@Brandon Turner There is a lot of good information on this webpage, but I had one question and maybe i'm oversimplifying it but... couldn't you just pick a different tenant, just choose someone else. You might not need any reason at all, or just hold the property for "repairs" or "Upgrades" for a month or maybe even two if needed, most people need a place soon and cannot afford to wait that long. I don't know if any of these ideas have any Marriott because I don't have a tone of experience but good luck.