Rental Property Investor · Mount Juliet, TN · Member since 2019 · 11 posts · 3 votes
Hello all ill try to make this short and too the point.
single family home 2br 1ba no room for change in floor plan and small house in good area
All numbers below are conservative.
Offer price 70k
Rehab cost 30k
ARV 150k
Monthly Rental income 800.
Cap ex 2000/yr
Insurance 850/yr
Maintenance 400/yr
Property tax 400/yr
closing cost 2000
vacancy rate 5 percent
management fee 10 percent
My wife and i are currently house hacking. Converted SFH into a duplex. We have been looking to expand our portfolio and put a 5 percent down on the property listed above with conventional loan and live there. After repairs (1yr) leave and rent the house then refi. I put these numbers in the bigger pockets BRRRR calc and am a little confrazled. Yes that is a word.
If im reading this calculator right it may be best to walk away offer lower price or use this for a fix and flip.
Rental Property Investor · Clarksville, TN · Member since 2016 · 1k+ posts · 1k+ votes
7y
Purchase price is too high or rental rate is too low for you to be happy with the Brrrr strategy comparing your numbers to our experiences in TN. Fix and flip or try further out from Nashville.
Rental Property Investor · Clarksville, TN · Member since 2016 · 1k+ posts · 1k+ votes
7y
Purchase price is too high or rental rate is too low for you to be happy with the Brrrr strategy comparing your numbers to our experiences in TN. Fix and flip or try further out from Nashville.
Rental Property Investor · Mount Juliet, TN · Member since 2019 · 11 posts · 3 votes
7y
@Todd Rasmussen here I thought I was the only one finding stuff in Nashville area. The market here is crazy right now. How long have y'all been investing? Out of state working out alright?
Rental Property Investor · Canton, OH · Member since 2017 · 1k+ posts · 1k+ votes
7y
@Calvin H Duggin
I'd pass. If it appraised at $150K and you assumed a 30 yr mortgage at 5% APR, 70% LTV, and capex, vacancy, repairs, PM of 25% of gross rent (I made this % up for a quick analysis), you'd be at nearly a -$70/mo. loss.
Monthly rent seems too low on a property valued that high. But, I'm basing that only off my area. For example, I see $795+ for 2/1's in C to C- neighborhoods in the midwest (that are appraised 1/2 that). Maybe try and negotiate the price down....substantially.
Started looking in Dec '16 and closed on our first Feb '17. Been in/around Clarksville with one exception since July '18 and figuring out a CA exit strategy.
Yes, currently looking at rossview school district in Clarksville for relocating. Have to time it with replacing enough of our w-2 income with rental income to make the move feasible/not shoot ourselves in the foot from a financing standpoint.
Clarksville, TN · Member since 2017 · 32 posts · 12 votes
7y
I'd be surprised if a 2/1 in Clarksville truly has an ARV of 150k, but assuming that's correct, flip it! Take the $30k you'd make, give generously to your church, pay your short term capital gains, and put the rest in two or three different properties that CF better than this one. Boom! If there's anything I can do to help along the way, let me know.