BiggerPockets

Your investment of 55K will net you $400+ in positive cash flow.

Use the Property Analysis Tool on BP to run the numbers!!!

The homes are fully rehabbed and professionally managed. The management company will cover your mortgage until a renter is placed in the home. (up to 6 months, longest has been 2)

The property will rent for a minimum of $1,150, section 8 rents. The purchase price is $55,000 and the appraisal will come in higher.

A local bank is available to help with the financing, they like the fact that the homes have plenty of equity.

Please contact me if you want to speak to current investors, the seller, the management team, etc.

Thanks,

Stacy

Hey Stacy - why don't you do the math for everyone here so we can see it....meaning the 50% / 2% rule.

Seems to me your numbers do not fit that rule - of course you may be referring to something else on BP that I don't know about.

Most like to see if the properties fit the 50% / 2% rule - they don't seem to to me but why don't you do the math for us?

Scott, buy for $55K and rent for $1150--thaf fits the 2% rule, doesn't it? Monthly rent should be at least 2% or purchase price. Isn't that the 2% rule?

be INCREDIBLY cautious on buying in st. pete. many (MOST) areas are basically warzones. due diligence is key!

Hey Stacy - I see the tool your referring to - that actually isn't "this sites property analysis tool" - that is an external site.

I would argue after reading the threads here for a bit now that this forums tool is the 50%/2% rule -

And really not trying to bust your chops as these homes do fit the 50% / 2% rule very well (and exceed it) but if the cash flow was exaggerated by double some might question other things.

No - and in fact I am trying to help you from having others question your integrity.

I didn't run any numbers using the external site - I am not a fan of that site to be honest.

I am not saying I am right here Stacy - I am just pointing out to you that when you say "Use the Property Analysis Tool on BP to run the numbers!!!" that made me think of the 50% / 2% rule. In fact it also made Jon think of at least the 2% rule....so 2 posters / readers here referenced that.

I said that I would argue that the "analsys tool" used here most on BP seems to be the 50% / 2% rule - just look through the threads and anyone who says "can someone please analyze" this - two or three people jump in with the 50% rule...

I have also said that your properties do very well with the 50% rule - they come in at over $200 / month VS the standard $100 / month.

I also gave you the benefit of the doubt in each of my posts by not slamming you or your integrity but by simply asking you some very fair questions such as:

- What math did you use to come up with $400 a month
- Are you assuming cash only buyer or did you consider any financing costs or the cost of cash
- What expenses did you include (taxes/insurance/vacancy/ vacancy/capitol improvements and on and on and on)

Answers to those questions would help others see the value of what your offering.

I was really just trying to help you out :)

As for info on the 50% / 20% there are several stickies at the link below and you can simply search 50% rule and lots of links will come up.

http://www.biggerpockets.com/forums/52-rental-property-questions-landlording-issues

stacy, i sent you a colleague request and note.

Scott,

All of the spreadsheets I can find on this forum show $400+ a month in positive cash flow.

I joined the Certified 50% / 2% Deals Group but there were no deals listed. So as far as it being the gold standard, a lot of people still need to be told. I'll call my last CCIM instructor and see if he can get it added to the curriculum, maybe that will help get the word out.

I admit that it is a great formula. I also think it's ok to use a spreadsheet that anyone can use to see some numbers to get things started. Now put a link to a 50% / 2% spreadsheet so we can all use the same analysis tool.

Now how many homes will you take?

To be fair to Scott he has given out some good advice since he's joined.

Stacy all the 50% rule is,is that most deals across the country will have at least 50% operating expenses that's it. It's simple math take the gross rents minus the 50% rule you'll get the NOI. Take the NOI minus debt service and you get cash flow.