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Non-Tech : Investing in Real Estate - Creative Opportunities -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (2560)	8/22/2016 10:43:38 AM
From: E_K_S	Read Replies (1) \| Respond to of 2722

I was not sure what the cost/sqft for construction in that area? $175K per unit is a reasonable price (including land) here on the West Coast but if they have a lot of remodel fix-up costs it could be more once they finish the work and get the units rented. So, you are right. It all comes down to their future rent roll and if they can see increase in the out years. I have always found that if you pay to much in the beginning, you start in the hole trying to improve you cap rate. Therefore, I always like to Buy properties at a discount $0.65 on the dollar (or less), then you have a level of minimum profit built in from your original buy price. EKS