All Forum Posts by: Larry K.

the reason cap rates are so low in new York and other major urban centers imo is because of vacancy and security. Meaning if cities in the United states were to start to go under then New York would likely be the last to do so. Therefore New York is considered to have low risk so lower returns. Some people also just like the idea of owning real estate in these places. It has a certain status appeal. It is blue chip.

no debt? 2.8 cap rate is not a lot of return.. It would have to be a stellar area.

I would not do it. You'll put yourself in position of being a beggar. You dont want to make their problem your problem. You want someone who has handled their finances in such a way to have the deposit money on hand.

you do it on the increased amount. And for your improvements to have made sense the ratio should get smaller after the improvements. So after improvements your gross rent should 2800.

for me this comes down to whether or not you think of you property as a business. If month after month you are writing checks to carry it then it seems less like a business and more like an annuity.

Keep in mind that cashflowing properties appreciate also.

I just got an email invite from them and signed up just to check it out. They dont seem to be a lender. What they are offering it seems are preferred positions (debt and equity) on deals. This is where we all want to be as we start to syndicate commercial deals. I have no idea if they are for real or ethical.

it really depends on your area to gauge this. I have heard that Ohio has good ratios for buy & hold. Just check out further on these forums for rules on thumb and how to analyze deals. Looks like you are on the right track though.

as soon as I saw the numbers showing it "worked". Meaning cashflowed and appraised well.

Does anyone out there have their tenants go to your bank with their rent check payable to you, fill out the deposit slip, and hand it to the cashier as a way of paying the rent?

I had previously always had them mail it but am now beginning to do it this way.

yes for sure.

In fact criminal and evictions are really the big ones to check for with an agency. If those show up the answer is no.

I really dont check for credit. Many tenants are renters because they dont have good credit but they still prioritize their rent.