Quote:
Originally posted by turbo6bar
I do the single family rentals exclusively, but I'm thinking of moving onward. I've been scouting timberland (not quite commercial), small retail space, office space, and car washes. You can't get a heckuva lot for under a million these days. The CAP rates range from 5 (yeah right, buddy) to a more respectable 10-11.
Despite double digit CAP rates on what appear to be quality properties, I'm still apprehensive. My fear is due to the residential housing bubble. On the other hand, I'm not certain the carnage will spill over into commercial RE fully. After all, declining or flat housing prices won't necessarily mean the dentist or CPA is forced to close shop and leave office space for good. I think worst case scenario is an overbuilt marketplace that will keep rents flat, meaning I won't see any appreciation or income growth.
I'm sitting on a small cartload of cash, so I'm motivated (bad place to be), but at the same time don't necessarily want to piss away some bucks for the thrill.
If you guys know any good web sites, I'm game.
jurgen
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REITS - Leave it to the experts.
Jurgen, its too late for commercial/retail. Its the new residential. Check into the REITS. Find a good manager and start feeding him small chunks, say $25K or $50K. Develop trust in him and knowledge for you. When things implode in a year or two, you'll have the knowledge to go out on your own and find some deals. Commercial/Retail are for the big dogs. You had better be prepared to play or else. You're a smart guy. I know you'll catch on soon
