All Forum Posts by: Tyler Dietrich

Hey All i'm in Leesburg VA good to meet other investors, I have properties in ashburn, leesburg, and one in clarke county va. Are you invested in the fairfax/loudoun area or do you look outside this area? The cash flow I know isn't as good as surrounding areas because of hte HOA and taxes.

@Tyler Dietrich we could likely add this feature pretty easily to our product (DealSimple), which was made for quick deal analysis. Is this something you'd be willing to test out and provide feedback for? If so I can set you up with a free account. Let me know! 

I have been telling my clients recently that buying for appreciation alone in this current market has a greater risk than I have seen in several years.  Take a look at the FED prices of homes from 1965 through 2021 with a bit in 2022.  The rise in prices during the past twenty-four months is the highest increase in U.S. history.  

This tells me that not only are many properties overpriced for this market but a recovery could fall into that 10-year cycle. This means while you may go into this property very lean on ROI it may take years to hit your goal.

Buy a property offering lower than current market pricing now to give you a good start.  It's all about the numbers. 

Tyler (and the whole BP community),

Thanks for sharing your report. I am trying to move into long term rentals, and I am probably overly conservative in my numbers. You listed 3% for vacancy. What did you base that on? I usually use 8%…but as I mentioned, that could be way too conservative? I’m interested in knowing how other investors determine these assumptions. 

Hey @Tyler Dietrich! To piggy back off of @Steve Redd, I'd also encourage you to be mindful of your vacancy rate and look at CapEx too as you currently have it at 0%. Just based on the what you've shared, it looks like a solid deal. Remember that value is derived from multiple points: tax benefits, cashflow, market appreciation, and/or forced appreciation.
What more can you share about the property? 

Hey Tyler, 

The cashflow is great, but the CoC return is a little low for my preference. I typically shoot for 10-12% CoC return. Is there a chance you can get the price down or get 20% down instead of 25%?

Got to be careful with this plan. Rents are already at all-time highs. If you think rents are going to increase as they have the last couple of years, you're taking a big risk. It's obviously up for debate, but it's within the realm of possibilities that rents flatten out or even decrease in the coming years. Just be modest with your rent projections. 

Depends on your goals, but I personally would not put 86k cash into a deal that would only generate 3.85% COC. I'm generally looking at 10%+, but in this market I might go down to 8%, but it would need to have a lot of appreciation upside and be in a really good area.