Tales From The Crypt - Cleveland Rental Horror Show
Manage episode 330554484 series 3293719
How do you know if your real estate investment is a home run or a total disaster? If you’re new to real estate investing, the major statistic we use to forecast our property's ROI is capitalization rate. It allows us to determine if we are actually making our ROI or are we losing money. In this episode, Mike Reilly and Mike Ferrante share horror stories of real estate experiences that can turn your dreams of financial security into nightmares of bad debt, poor returns, and lost opportunities.
2:02 Mike Ferrante explains what a cap rate is.
5:51 Mike Reilly discusses another type of deal in real estate – timeshare.
6:54 Mike Reilly shares a story about an investor who bought a quadplex with a good cap rate and a voucher tenant.
10:51 Michael Reilly shares another story of an investor who had a tenant stop paying rent once new owners were in place.
12:52 Mike Ferrante talks about the importance of knowing the nuances of neighborhoods.
15:16 Mike Reilly shares another story of an investor who bought a duplex in a nice area and inherited a tenant who is causing him major headaches.
19:52 Mike Reilly and Mike Ferrante share a quick heat check of the current real estate market.
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