All Forum Posts by: Jacob Ashley

@Jay Hinrichs

Thanks, Jay.

I know I already mentioned this, but it was in a comment of a post. I wanted to try to clarify my criteria and also hear other feedback through an altogether new forum.

Appreciate your input.

Searching for markets with properties that meet or exceed the following criteria:

- cash-on-cash return of at least 12%

- annual appreciation of at least inflation plus 2%-3%

- low crime area

- strong school system area

Above targets to be reached after provision for the budget assumptions below:

- 10% vacancy

- 10% of rent for property management fee

- 10% of rent for CAPEX

- 5%-10% of rent for general Operating Expenses

- 1%-3% of property value for insurance

- 1%-3% of property value for taxes

- 10% of rent for misc. expense retainer

- debt service on 80% leverage

Are my expectations unreasonable, or have you experienced/come across properties in locations where I could achieve these targets?

Look forward to the feedback! Please feel free to share agents/property managers/other “Core Four”-like team member’s info as you deem helpful.

Thank you!

@Elliott Elkhoury

Elliott - would be great to chat if you could message me after accepting my connection request?

Thanks!

@Ivan Guillen

Hi Ivan,

Please send me a private message after you accept my connection so we can chat.

Thanks,

Jake

@Jay Hinrichs

Appreciate the feedback Jay.

I have heard that generally a 2% rule property is too good to be true, was curious if people have had success anywhere (and have been happy) with those kind of properties.

What are your thoughts on viability/approach to the below:

Is it unreasonable to find a property levered 80% debt, 20% down payment that generates a cash-on-cash return of approx. 12% and annual appreciation of approx. 3% while using the following estimates:

- 1/12 months vacancy,

- 10% of total rent for CAPEX,

- 10% of total rent for property management,

- 1% of property value for taxes,

- 1% of property value for insurance, and

- Misc. expense retainer of 10%?

Really curious to get your thoughts on what you’ve had experience with.

Thanks!

Looking for cities in the country that have viable 2%-rule properties which still have the opportunity for appreciation.

Appreciate your recommendations!

I am looking into long-distance real estate investing locations where investors have experienced success through properties (MF or SF) at a sub-$200K price point with both strong cash-flow and strong opportunity for appreciation while operating through a "Core Four" type model; property management will be an important part of the team.

Please also share any referrals you may have for your recommended locations.

Thank you.

@Filipe Pereira and @Matt Castle thanks for your comments; I sent you each a connection request.  Would be great to chat a bit more offline?  Please direct message me if you'd like to chat more.

I’m from Massachusetts in the earlier stages of real estate investing.

Curious to hear perspective/input in what cities/states investors have seen success for long-distance real estate investing with properties around or under $150,000.

Please feel free to share property managers/your Core Four for your recommend area(s).

Thanks!