All Forum Posts by: David Song

Todd Dexheimer It is amazing that you did 150 flips. That is a heck of a job. Super man!

DL Martin The government just print money. No need to worry about that. One thing for sure is inflation will come soon, diluting the value of paper money. REI is one of the best way against inflation. The fed printed a lot of money in the last 9 years. They are very good at that. The minimum wage is going to $18 in San Mateo soon. The police officer are paid over 100 k -150 k here for sure.

Todd Dexheimer Unrealized gains are equity, which you can refinanced out and expand. Why you only think cash as profit? If you have nice cash flow, appreciated, that is what these BRRR strategy is all about. Cash out and buy more.

Todd Dexheimer I think you made more profit from appreciation than cash flow, based on your description. Is that right?

Todd Dexheimer Your properties appreciated because the underlying land appreciated, not the house on top of it. I think you picked the right areas in your city. In ca Bay Area, a lot of 100 year old crap house are over a million. But the structure only cost 200k -300 k to build new.

Jd Martin I do not believe one strategy fits all. However, REI is all about location, even within a small area, in my view. Actually, I lived in Midwest for about 5 years. Columbus, oh. Looking at the RE prices in Columbus, the sub 50 k properties are all in pretty rough areas. Around OSU, price/sf is around $150-200/sf now. There is no more bargain left. East of highway 70, the prices drop to < 50k in many occasions. But I know that area well. That used to be a war zone. Five years ago, if you invested around the university, you win big. If you invested east of 70, your profit is less. Therefore, there is nothing about ca versus other states. Every state has its own regional characters and investment strategies. Even in Tennessee, the current prices have rebounded quite a bit. I do not know which town you invest, but if you can find <50 k properties, with cap rate (not gross rent) above 10%, that will be a nice find. Even in Texas, the available commercial properties are only around 8% cap, some even 6%. That is really not that higher than ca.

Greg H. If you do not mind, how many property can generate 20 k monthly rent? What is the cap rate in your area? What is the capex per year?

Tim Jones Thanks for the advice. Pretty rough Area.

Rodney Miller Actually, both OK and TX are good appreciation states. Both enjoys robust population growth and job growth.

Sebastien Hitier Cap rate 3% above loan interest rate. Currently, in ca, you can get 7-8% cap on commercial properties in east bay and further east area. Or north bay e.g., Fairfield area. The mobile home park we bought two months ago has cap rate around 9%. With vacancy fill up, and streamlining the management, our goal is to get it to11-12%. 58 space park, around 35k per space. 2 m range.