All Forum Posts by: Joe Villeneuve

This is very good insight. This is where the science of the program gives way to the art of the investor. For example, if the investor knows the H2O heater, roof, appliances, or HVAC unit are of different life expectancy than the average the program defaults to, we will have the future ability to enter the investor’s expectancy. Perhaps lower if it is a rental, as renters are not known for maintenance of capital items. The vision of this program is to help the investor determine if it is a viable file AND to monitor the property’s investment value after purchase.

Excellent point! Both. Once the investor enters the life expectancy of the capital expenses, financing, short term financing, rehab costs, turn costs, maintenance, and expected sale or rental revenue, the property management features will project the cashflow, equity, and profitability. Graphic projections will be created to anticipate when capital expenses might occur. This gives the investor the option to either solicit bids from the program’s contacts section or time the sale to avoid possible expenses. This could also help the investor see if those items will need replacing at a narrow or broad timeframe, thus affecting the purchase offer price. The vision of this program is to help the investor determine if it is a viable file AND to monitor the property’s investment value after purchase.

I should have specified 5-10% CoC ROI on a single-family or small multifamily (2-4 units) property. The intent is to see if people have lowered their expectations for returns based on the current market. I have been able to find 5-10% CoC ROI on these assets in some states but it just feels wrong lowering my standards (15% CoC ROI). I'm wondering if others are doing the same. There is no right or wrong answer here or deal to analyze; I'm just fishing for investor sentiment regarding desired returns in a challenging market.

If you found a deal with strict underwriting that netted 5-10% in an appreciating market, would you be interested in it? Why or why not?

To keep things simple, I'm not accounting for the cost of capital (that is very personal and varies for everyone) and I'm not considering other exit strategies. If it works as a traditional rental, everything else is gravy on top.