Posted by Dr. B. (OH) on November 03, 2009 at 13:11:59:
In Reply to: Where's the Money? posted by Dr. B. (OH) on November 03, 2009 at 08:06:14:
Thanks Kristine and JT.
As a MoHo investor, the main thing that has been clear to me is to buy at 10-50% retail, sell on a note at retail or slightly above and money will be made.
I guess I may have been mixing my "industry standards". The "rent at 1% of purchase price" seems to be common among real estate agents and other likely non-investors.
I've read "figure 50% expense ratio" for investment property. In retrospect most of those books were about multifamily properties.
So, forget the "standards" and rubrics and just figure out if it will cash flow, right? Got it. Back to crunching the numbers in my usual way.
Thanks again,
Steve