Could you help me evaluate my 1st deal?

Question

I'm already a landlord.  My wife and I own bought a new house last year.  We kept our old house because it was paid off and put a renter in it.  It's been a great first year!  So we became accidental landlord lol.

Now we are going to BUY some deals and expand our rental portfolio.

I have a good deal on a 3 bedroom 1 bath home. It's already been flipped, just needs appliances. I think there is great room to add value to the home as well (a 2nd bathroom could easily be added before we resell it later. But its 100% rentable now).

I used the pro tools and was just wanting someone to take a look and let me know what they thought. It looks to me like it would cash flow pretty easy. Thoughts?

I was super conservative with all my numbers, still learning.

Rob Hakes · Answer

I was interested in this post and glanced at it.  I did not see any Insurance costs in there.  Did you include insurance?

Sam Shueh · Answer

property tax rate should be 24.42 cents per $100 assessed value. That sounds very low there may be other city taxes etc.

As for closing contact your local escrow if you use them they can give you exact rate. In CA as a realtor I tell them est 1-1.5% of sales price as rough estimate but the Alta title and local taxes are not the same as Knox County.

Good luck.

Michael Faurest · Answer

Shane, I own some properties and I'm happy to help you think through this.  Message me privately and we can discuss more.  Thanks.

Shane Sams · Answer

Here is the report:

The numbers for this deal

Soh Tanaka · Answer

How does the numbers look? Can you post?

Shane Sams · Answer

Thank you so much for your expertise Sam.  I appreciate you.

Shane Sams · Answer

for sure, i have lots of cash so I just threw that number in.  I was mainly looking at the monthly stuff to make sure long term it is a good monthly investment with good cashflow.  What do you think would be a better estimate? 3k? 3500?

Sam Shueh · Answer

I was a member of Louisville Board of Realtors before so I am somewhat familiar with the area. When you close there is advanced property tax, title you need to ascertain that  $2K is adequate to cover it.  Just my 2 cents.

Could you help me evaluate my 1st deal?

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