Please note that a CAP rate is typically a reflection of Yield vs Risk. The higher the CAP rate typically takes on more risk. But again as mentioned in the other responses, CAP rates are not the only indicator in the investment. A lot has to do with your investment objectives.
Quote:
On 2008-05-25 11:12, cjmazur wrote:
what amount 30-yr amort, w/ a balloon at 5 that you can cash out your rehab?
Are you asking what amount I think I could end up with after a sale assuming a 30-yr amortization and I sell before 5 years? That is something I am trying to narrow down. I now that much smaller buildings as duplexes or singles have sold for in excess of $200k one block away. But when I look at the Income-Debt ratio I get nothing like the numbers I think I should. So that is fundamental to my problem of understanding this property.
Wow, if your 9 unit was in Wilkes Barre then at first glance there appears to be better deals right on the mls. Check out http://www.realtor.com/realestate/wilkesbarre-pa-18702-1098411890/
A 4 fam, 4400 sq ft for $29k asking price? At $7,500/unit I wish I had more of these available in Jacksonville, FL.
more so if the carryback was a lonnger amort, how would the cashflow be?
As a fall back have you looked at the sect 8 rates and demand in the area?
Quote:
On 2008-05-25 11:39, Trant wrote:
Quote:
On 2008-05-25 11:12, cjmazur wrote:
what amount 30-yr amort, w/ a balloon at 5 that you can cash out your rehab?
Are you asking what amount I think I could end up with after a sale assuming a 30-yr amortization and I sell before 5 years? That is something I am trying to narrow down. I now that much smaller buildings as duplexes or singles have sold for in excess of $200k one block away. But when I look at the Income-Debt ratio I get nothing like the numbers I think I should. So that is fundamental to my problem of understanding this property.
I know you are trying to tell me something but I am having trouble following.
I am familiar with the section 8 rates in the area. I already have 2 section 8 tenants and get applications from others regularly. There is a good section 8 demand in the area. The numbers I quoted for rents in the original post are all well within the section 8 allowances.
Quote:
On 2008-05-26 01:52, cjmazur wrote:
more so if the carryback was a lonnger amort, how would the cashflow be?
As a fall back have you looked at the sect 8 rates and demand in the area?
Quote:
On 2008-05-25 11:39, Trant wrote:
Quote:
On 2008-05-25 11:12, cjmazur wrote:
what amount 30-yr amort, w/ a balloon at 5 that you can cash out your rehab?
Are you asking what amount I think I could end up with after a sale assuming a 30-yr amortization and I sell before 5 years? That is something I am trying to narrow down. I now that much smaller buildings as duplexes or singles have sold for in excess of $200k one block away. But when I look at the Income-Debt ratio I get nothing like the numbers I think I should. So that is fundamental to my problem of understanding this property.
getting to positive cash-flow seems to be one of the issues.
If you have a longer amort period (say 30 or 40 yrs, Int only, balloon note) The debt service will be less and allow you to cash flow positive more easily.
Cumming is on the northern tip of greater Atlanta (some would say it is too far out to be metro Atlanta). Growth has been good there over the past few years, but it is still pretty rural in a lot of areas in Forsyth County. You will be better off if it is near the downtown Cumming area....
"Downtown" was probably a bad choice of words on my part. I was just meaning where the bulk of everything is. Some places have a Cumming address, but may be in what most would consider rural areas. Do a search for City of Cumming and that will give you an idea of where I was trying to describe...
you can get better return on the rental, but do you really get a better cap rate over all?
from my research TX seems to have good cap rates, but crappy appreciation rate.
Please note that a CAP rate is typically a reflection of Yield vs Risk. The higher the CAP rate typically takes on more risk. But again as mentioned in the other responses, CAP rates are not the only indicator in the investment. A lot has to do with your investment objectives.
I was called during the week. if you subscribe to the professional level of www.lxxpnet.com, they have cap rate search and compare capability.
Try www.RedMol.com
Loon.. can you share some of these techniques?
what amount 30-yr amort, w/ a balloon at 5 that you can cash out your rehab?
Quote:
On 2008-05-25 11:12, cjmazur wrote:
what amount 30-yr amort, w/ a balloon at 5 that you can cash out your rehab?
Are you asking what amount I think I could end up with after a sale assuming a 30-yr amortization and I sell before 5 years? That is something I am trying to narrow down. I now that much smaller buildings as duplexes or singles have sold for in excess of $200k one block away. But when I look at the Income-Debt ratio I get nothing like the numbers I think I should. So that is fundamental to my problem of understanding this property.
Wow, if your 9 unit was in Wilkes Barre then at first glance there appears to be better deals right on the mls. Check out http://www.realtor.com/realestate/wilkesbarre-pa-18702-1098411890/
A 4 fam, 4400 sq ft for $29k asking price? At $7,500/unit I wish I had more of these available in Jacksonville, FL.
more so if the carryback was a lonnger amort, how would the cashflow be?
As a fall back have you looked at the sect 8 rates and demand in the area?
Quote:
On 2008-05-25 11:39, Trant wrote:
Quote:
On 2008-05-25 11:12, cjmazur wrote:
what amount 30-yr amort, w/ a balloon at 5 that you can cash out your rehab?
Are you asking what amount I think I could end up with after a sale assuming a 30-yr amortization and I sell before 5 years? That is something I am trying to narrow down. I now that much smaller buildings as duplexes or singles have sold for in excess of $200k one block away. But when I look at the Income-Debt ratio I get nothing like the numbers I think I should. So that is fundamental to my problem of understanding this property.
Cjmazur,
I know you are trying to tell me something but I am having trouble following.
I am familiar with the section 8 rates in the area. I already have 2 section 8 tenants and get applications from others regularly. There is a good section 8 demand in the area. The numbers I quoted for rents in the original post are all well within the section 8 allowances.
Quote:
On 2008-05-26 01:52, cjmazur wrote:
more so if the carryback was a lonnger amort, how would the cashflow be?
As a fall back have you looked at the sect 8 rates and demand in the area?
Quote:
On 2008-05-25 11:39, Trant wrote:
Quote:
On 2008-05-25 11:12, cjmazur wrote:
what amount 30-yr amort, w/ a balloon at 5 that you can cash out your rehab?
Are you asking what amount I think I could end up with after a sale assuming a 30-yr amortization and I sell before 5 years? That is something I am trying to narrow down. I now that much smaller buildings as duplexes or singles have sold for in excess of $200k one block away. But when I look at the Income-Debt ratio I get nothing like the numbers I think I should. So that is fundamental to my problem of understanding this property.
getting to positive cash-flow seems to be one of the issues.
If you have a longer amort period (say 30 or 40 yrs, Int only, balloon note) The debt service will be less and allow you to cash flow positive more easily.
PM me if that still not clear.
Cumming is on the northern tip of greater Atlanta (some would say it is too far out to be metro Atlanta). Growth has been good there over the past few years, but it is still pretty rural in a lot of areas in Forsyth County. You will be better off if it is near the downtown Cumming area....
Thanks.
Can you tell me what street intersection would be considered downtown?
"Downtown" was probably a bad choice of words on my part. I was just meaning where the bulk of everything is. Some places have a Cumming address, but may be in what most would consider rural areas. Do a search for City of Cumming and that will give you an idea of where I was trying to describe...
What about just holding it for the cash flow, and not worry about the refi so long and loan is non-recourse.
Chet is saying milk it for the cash flow, then walk whan the note comes due.
Hard nosed business, but not great for your reputation- and you say you have dealt with this broker before...
Chris
Not my style either...
Chris