All Forum Posts by: Ian Goodstein

@Greg Harris Here is the breakdown they quoted me:

Purchase Price:$699,000

Number of Units:2 units Property Taxes:$8,388 Insurance:$806.50 Maintenance/Repairs:$1080 Trash/Pest/Garden:$840 Gross Operating Income:$52,800 Net Operating Income:$41,685.50 CAP Rate:6% There isn't rent quoted on the MLS, but doing a quick Craigslist search indicates I can get the following: For the 3 bedroom 2 bath somewhere between $2,100 and $2,800 For the 1 bedroom 1 bath somewhere between $1,500 and $1,600 The the following cap rate calculation I use a gross monthly rent of 4k. Cost = 699k Rent = 4k Taxes = $675 - this is based on a quick google search for prop taxes in LA, quoted at 1.16% Insurance = $150/month (total estimate, I have not received an official bid) Vacancy = $280 (based on 7% of rent) Repairs = $200 (based on 5% of rent, because this was recently rehabbed) Expenses totaled together (without mortgage) = $1,305 $15,660/$699,000 = 2.24% cap rate My plan would be to live in the smaller unit and rent out the larger one.

Thank you for all the replies, I wasn't expecting so many thoughtful responses. I've read through them all and I have decided I need to improve my deal analysis skills before I make a move. Thanks again and what a great community this is. 

Long time listener, first time caller. A real estate agent I have been working with in Los Angeles claims this property has a cap rate of 6%.

https://www.zillow.com/homedetails/6564-5th-Ave-Los-Angeles-CA-90043/20327737_zpid/

When I calculate it, I get a cap rate of 1.5%.

I am new to this and I'm curious what others get as the cap rate? I am trying to complete my first deal in the Los Angeles area, and I'm looking to learn all I can to avoid buying a bad deal. Thanks in advance for any replies. 

Thanks! Looking forward to getting involved. 

Hello All,

I am totally new to real estate investing. My goal is to close my first deal in 2019. I want to buy and hold a duplex or triplex rental property somewhere in the Los Angeles, CA area.

A little about me: I'm a self employed equipment leasing broker, and have been since 2012. We essentially do hard money equipment deals for businesses. For example, if a construction company needed to finance a crane but their bank said no. 

Looking forward to learning as much as I can!