All Forum Posts by: Eric Dowling

Alex Balagna Welcome to BP! You have come to the right place. Don't hesitate to reach out!

@Richard F.From how I read it I think between your schooling background and your years at LADWP you would be accepted.

Welcome to BP @Jorge Galvez! You definitely came the the right place. Make sure to check out the podcasts, and don't hesitate to reach out!

Welcome to BP @Mikhail Tekeste

You have come to the right place! Don't hesitate to reach out.

@Jesus Garciawelcome to BP! You have absolutely come to the right place. 

Is your duplex near you, and do you plan to continue to invest here or go out of the area?

@Account Closed this is why cap rates are only used for commercial properties. The whole idea is to compare different type/size/income in a market. 

If buildings are selling for 4% cap rate in my market and my building has 26k NOI, that means it is worth 650k. If the building across the street has a 114k NOI that building worth 2.85 million.

You don't add value by upping cap rate, you add value by increasing revenue and decreasing expenses. Each deal does not have a cap rate, only the market has a cap rate.

Bob's whole point is to make you see that you are looking at cap rate wrong. Obviously by 5xing your NOI your value increased, but if you increase the cap rate in the calculation it did not.

The problem also is in the fact that 1-4 unit properties do not trade on cap rate, so although you can still add value to these properties, you can not calculate your return using cap rate.

Christos Philippou the way Jeffrey H. Explained cap rates is actually not how cap rates work. The way it works is if you have 5k NOI and the cap rate was 10%, then increased NOI to 10k, then the cap rate would remain the same and the value would go up to 100k from the 50k purchase price. Cap rates are pretty much unless for 1-4 unit properties. As Bob Bowling said, the market dictate cap rates, and 1-4 unit properties are not based on cap rates. All that said it looks like you got a very good deal.

John Drinkwater Welcome to BP! Good luck on your first flip! Where is it located? Would love to here more details and numbers!

Jeff P. Welcome to BP! I love the house hacking strategy. Don't hesitate to reach out!

Craig Kleffman welcome to BP! I love the pod casts too and am listening to them backwards. Listening to them everyday is the best way to stay motivated. I like the idea of going with the FHA 203k route to start. It will give you the ability to learn how to flip by going through the process, then you have two things: a house for you and your family, and the capital(from the low down payment) to pursue flips. You may even have the confidence to do it without a partner. Though I do like the idea of partnering!