All Forum Posts by: Kristopher Derentz

Thanks guys for the feedback. Much appreciated. I also looked at Nevada (I moved to Meridian from Henderson) and it doesn't seem to be any better. It just seems like in sellers markets its very very difficult to make the #s work. 

Are any of you investing in other states? and if you do mind sharing? Or is there anywhere on biggerpockets that is a good are to find markets that the #s do work in? 

Hey guys,

Just moved to Boise after living in Henderson for 17 years. The market here is not making sense as rents are roughly 1% or lower of purchase price (everything basically fails the 2% rule). I was looking at properties on Zillow just to gauge the market and it seems similar in both Vegas/Henderson and Reno/Sparks. Are you guys actually finding any properties that pass the 2% rule? What kind of CoCROI are you seeing? I thought about buying back in the area but prices seem high the the returns don't pass the criteria and you would be banking on appreciation which is a no no in my book.

Hey guys, 

As a newb I am looking to buy my first property. I have spent a LOT of time reading as much as possible and found Brandon Turner's book "The Book On Rental Property Investing" to be one of the best reads so far. Also the Bigger Pockets pod casts have been another great source. With that said it seems like the returns that Brandon and other investors are getting on buy and hold rentals are not possible here in Treasure Valley. For example Brandon in his book and on the pod cast said he shoots for the following:

CoCROI = 12% w/ Appreciation = 3%

When he interviewed David Osborn (Podcast #226), David said he expects a minimum of 15% CoCROI. 

Brandon says that CoCROI is Cash Flow / investment.

Where Cash Flow = Monthly Rental Rate - Mortgage payment, property taxes, insurance, vacancy rate, repairs & main, cap ex, and PM fees. 

Investment = down payment + closing costs 

When I'm doing my calculations on local properties I'm not seeing anywhere near these numbers. Brandon also suggested some rules of thumb in the book such as the 2% rule. The 2% rule is taking the rental rate and dividing it by the purchase price to get a %. If that % is over 2% then the property is worth investigating. When running the 2% test on properties here they work out between 1% on the highest side to 0.7% on average and as low as 0.6%. Looking at REOs improves this a bit but still not close to 2%. 

With that said anyone care to share what they realistically are shooting for with their criteria when investing here? What kind of CoCROI are you guys seeing? Are most investors here basing their investments heavily on Appreciation since prices are averaging over 6% increases annually?

With the prices in Ada County being pushed up has anyone looked at Nampa? There seems to be a lot of development out there and the traffic on the 84 going into Boise each day seems to be getting worst by the month, so it would appear there are a lot of people commuting. 

Has anyone done the analysis there? (I haven't as I'm just getting started in to investing) I know @Jonna Weber did tell me property taxes there are higher so that might be a negative. 

Hi Everyone ... just saw this now. Will there be another meet this month or in June? 

Hi Everyone,

I'm new to Meridian, as I relocated from Las Vegas about a year ago. Just starting my journey into real estate investing and would love to connect with experienced investors, as well as wholesalers.