Asking for advice/help

[Thomas Beyer]

QUOTE (investmart @ Nov 27 2010, 08:08 PM) ..
Many properties easily generate positive cash flow with 90% LTV ..
not my 12 year experience !

 

[Nir]

QUOTE (ThomasBeyer @ Nov 28 2010, 11:13 PM) not my 12 year experience !
How many plexes 4 units or less have you purchased in the last 3 yrs? correct me if I`m wrong, you buy much bigger apartment buildings.
Different property types perform differently. Regardless, as explained, a property that generates positive cash flow with 80% LTV (and I think you agree many properties do), will in most cases also generate positive cash flow with 90% LTV (I think this was your only confusion)

Regards.

 

[Thomas Beyer]

QUOTE (investmart @ Nov 29 2010, 03:19 PM) How many plexes 4 units or less have you purchased in the last 3 yrs? correct me if I`m wrong, you buy much bigger apartment buildings.
Different property types perform differently. Regardless, as explained, a property that generates positive cash flow with 80% LTV (and I think you agree many properties do), will in most cases also generate positive cash flow with 90% LTV (I think this was your only confusion)

Regards.
most apartment buildings sell for better yields (i.e. higher CAP rates) than 4-plexes .. and those usually have a higher yield than a single unit !

did you count all R&M expenses and property management fees ?

today we rarely go over 75% leverage !

 

[Nir]

QUOTE (ThomasBeyer @ Nov 29 2010, 06:00 PM)
did you count all R&M expenses and property management fees ?




of course, I learned it from you Thomas, in case you forgot

, and from Don, in addition to other superb time-saving expense guestimates like the 50% rule I also learned from you and from Greg ('invst4profit') around 2 years ago. (you switched topics though - 80% vs. 90% LTV makes no difference

) Cheers.