Hooch,
I send you a DM but it was kind of verbose so to get back to my original question in it-
what is the hooch method and is it named after/developed by YOU? :help
LOL, I called it that because it is what I use as a guideline for low income property. Low income can not be compared to middle class property which is best valued using the 2% rule.
Take a look here and you will have a pretty good understanding of real estate valuation and the Hooch Method.
http://www.reiclub.com/forums/index.php/topic,43281.0.html
Sorry, I haven’t checked my pm’s and your saying that just made me realize I have many.
The 2% Rule is an excellent screening tool for low income rentals and will result in a positive cash flow for almost all low income SFHs and small multis. Of course, you always need to do a cash flow analysis for any property you are considering.
There is nothing wrong with buying at rent X 30 or rent X 35. The cheaper you buy a given property, the better! However, the greater the discount you need, the harder it is to find properties that fit that model. Buying at rent X 50 may allow you to find a lot more properties that will cash flow and therefore build a successful business faster.
Mike
Property manager is right. The lower you go the harder you have to look for a property to meet your buying criteria which will result in slower growth.
The Hooch method sounds like a sexual position :biggrin
LOL, Very similar to the Dirty Sanchez in the way you give it to the seller. The only difference is with the Hooch Method, they are supposed to walk away with a smile on their face. :biggrin
At least the avatar is right! LOL!
:deal :biggrin
Bump what happened to Hooch? I thought he was a very knowledgeable member here.
Hooch took his toys and went home.