All Forum Posts by: Scott Weaner

I have noticed that most people use the garage for storage, not their car!

College :shock:

Thanks, Jon and Charles. Jon, that really does help educate me, and thank you for taking the time to fully explain all of that.

Is there some type of program that does give all of this type of info without needing a CPA degree.

Charles, I also gamble when investing in stocks. Why would this be any different?

I don't know what the experienced people will say, but if it will cost $3000 to make $100/month, it will take take 30 months to make that up. That doesn't seem to make great sense to me, especially with a reasonably good tenant in place.

Jon and Calixto, I used the evaluation tool on this site. I think the total rate of return will include the principle paid on the mortgage, which to me IS the return on the down payment. It is total return, not, of course, cash-on-cash which would be zero. Try plugging those numbers in.

Of course, this does not consider what would happen if the property depreciates. Also, it would not give any leeway for unexpected expenses.

I am still trying to figure out the cash flow issue. For an investor that doesn't care about cash income from a property, and if total return is good, why does it make such a difference.

For Example: A $100,000 property, rents for $1200. $600 expenses. 90% mortgage at 7%.

Cash flow is essentially zero. Assuming 0% appreciation, rent increase, expense increase, and vacancy.

Total rate of return is still 14%. That is not so bad? Help me to see the light!

Speaking about Loopnet, is the paid membership, with access to all of the listings, worth the price?

Josh, I thought CAP rate was NOI/purchase price.

Mike, it still seems to have a good rate of return, even if based on 0% appreciation. I calculate at least 15% with the analysis tool.

I have figured about $1500 rent for every $100,000 purchase price.