All Forum Posts by: John Timmerman
John Timmerman has started 3 posts and replied 27 times.
Post: What to pay for existing, cash-flowing properties?
- Posts 27
- Votes 10
Quote from @Stephen Schmitt:
I agree with Joe, market value is what a buyer will pay. I have a feeling the 5 unit does not have a lot of comps. Every property is different, different location and condition. Find out what your targets are for cash flow, location and renovation costs, as a starting point. “Market value” is too subjective.
Post: What to pay for existing, cash-flowing properties?
- Posts 27
- Votes 10
Quote from @Dillon Cook:
We're talking 8 units here right? 50k a piece seems extremely cheap anywhere
YEa its a single family, duplex and a 5-unit
Post: What to pay for existing, cash-flowing properties?
- Posts 27
- Votes 10
Quote from @Stephen Schmitt:
Thanks @Stephen Schmitt, I re did my calculations aside from the sellers document and came up with about $17k in annual cashflow after all expenses. CAC with $170k down is 10.5% (at $650k purchase price)
I see you're in Liverpool. Me too. Let's meet up soon.
Post: What to pay for existing, cash-flowing properties?
- Posts 27
- Votes 10
@Joe Splitrock thanks for the feedback my friend! Maybe I am misusing "Market Value". $400k is what these properties would sell for on the residential market (primary residence) NOT as an investment property. I was only mentioning that to show the value when not including revenue potential.
Yes these numbers are very fluffy, I'll have to try to get actual numbers from last year.
Post: What to pay for existing, cash-flowing properties?
- Posts 27
- Votes 10
Thanks @Martin Badinelli, The cap is listed by seller at 7.6%. Not sure if these screenshots are legible. @Jaron Walling @Michael Dumler net is a little above $60k, so you are saying $825k seems reasonable? (Syracuse market is at about 12% appreciation)
Post: What to pay for existing, cash-flowing properties?
- Posts 27
- Votes 10
@Jaron Walling seller is asking $825k, does that seem low? high? My real estate agent suggested offering $650k, but I'm trying to figure out how to calculate the value of a cash flowing property. How would you do it?
Post: What to pay for existing, cash-flowing properties?
- Posts 27
- Votes 10
I'm in Syracuse, NY and have a portfolio of properties I'd like to buy. Market value for all 3 properties (1 single, 1 duplex, and a 5-unit) is about $400k; net cash flow is about $60k a year, and seller is asking $825k (which is very high).
What is fair and typical to pay for an existing investment property with tenants already cash flowing?