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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Micawber who wrote (304312)	2/19/2011 9:06:44 PM
From: John Vosilla	Read Replies (1) \| Respond to of 306849

The sweet spot right now to be set for the next phase is where values are quite low in solid working to middle class single family communities and rents are rising is to buy for all cash way below market then get some low interest fixed rate debt for 50-60% LTV and hold long term.. Talking gross rent multiples around 6 and cap rates near 13-15% on retail prices. The IRR, the leveraged cash on cash first year return, the multiple back end profit on your initial investment on a ten year hold has never been quite this favorable not even factoring some serious appreciation potential during the next decade or even buying way below market like I try to always do.. I guess you would need to go to Florida, Arizona, Atlanta, central PA..ect..if the numbers aren't working in Philly..