All Forum Posts by: Reece Register

@Bryan Blankenship is spot on. 

Sounds a little high to me. 

Cash flow is different from COC. Our formulas take into account everything you mentioned.

@Johann Jells exactly where IRR/COC comes into play. It does calculate all of the above.

@Immanuel Sibero cap rate does not take into account the debt service so that is where financing comes into play. I teach investors and agents classes on what to look for and evaluate a property based on the COC first for sure. Cap rate just seems to be the first term everyone throws out without really knowing what it means or how it is calculated.

Here in the Tampa Market we are seeing inexperienced investors wanting to purchase buy and hold properties but not sure what line to look at when evaluating deals.... Cap rate seems to be the common term. If you are financing and holding a property for 5-10 years shouldn't the IRR be the most important number to look at?

Amen to this. Do your research and ask the right questions when interviewing a PM company. Well said. 

New and experienced investors along with professionals in the field are welcome. Take this opportunity to discuss why having a team around your investments will make the process much easier for you. We also share success stories as well as learning mistakes. 

Currently being managed and sold by Rent It Network. Great tenant in place up for renewal and wants to stay. Great SFR investment home with a solid tenant in place.

Investors must read... 

Too many times now we are seeing eager investors being put into bad deals or not maximizing their return. 

Recently we had an investor looking to purchase a rental income property and he used a "Big Name/Advertising Real Estate Agent". Prior to purchase he never got an opinion on the home he wanted to purchase. After purchase he wanted us to manage the property. Upon setting everything up... The HOA did not allow the home to be a rental for two years!

This is one example of the many I have experienced. 

Investors buying or selling make sure you have an experienced agent on your side not an agent just looking to close a deal.  

Ask your agent or PM these questions..

1) How many buy and hold properties have you worked with?

2) Do you have a trusted partner to give me a rental analysis?

3) If I want to sell my rental property (tenant occupied) are you familiar with how to go about this?

4) Can you get a trusted contractor to give me an estimate on renovations so I can calculate this into the purchase price?

I know there are many more questions to be asked here. Has anyone on BP experienced this first or second hand that can share as well?