Help w/forecasting costs? - College Station Townhome Investment

General Landlording & Rental Properties
5yFollow

Help w/forecasting costs? - College Station Townhome Investment

Account Closed
New to Real Estate · Grapevine, TX · Member since 2020 · 4 posts · 1 vote

Hello, I am in the process of creating an excel model that will determine if a 4bd/5ba townhome investment will be profitable. I have never purchased a property before, and am trying to forecast expenses. 

What type of landlord/property insurance coverage will a FHA lender typically require? Which insurance company is the cheapest? Which has the best value?

How much do you think I will spend in yearly repairs on the property on small things such as garbage disposal repair, fridge/oven/microwave, etc. (Excluding larger expenses carpet cleaning, repainting, roof replacement).

What would be the estimated gas/electric/water/sewer monthly charges? Assuming I do not pass these costs along to the tenant? 

Any advice/recommendations are welcomed! If any of you use your own model or website when analyzing a deal and do not mind sharing, please do. Thanks. 

0Reply
20 views

Most Popular Reply

Stephen Beck
Member since 2020 · 10 posts · 7 votes
5y

My tenants pay their own gas, sewer and water. I have an agreement with the city to leave the utilities on when they vacate so I can get the unit ready for the next batch of students. Then I give the new tenants a deadline to have the utilities switched to their name. Usually Aug 5th.

Also I like one payment for rent even though there are 4 room mates. It prevents one student from not paying while the others pay. You can't legally evict just the one non-paying student if all four signed the lease, you have to evict them all -  and that gets very costly and very messy! So, collect one payment each month...preferably online!

3Reply
See this reply in the discussion

5 Replies

Jump to latestLatest
  • David SchmiedicheBusiness Member
    Real Estate Agent · College Station, TX · Member since 2020 · 124 posts · 68 votes
    5y

    Hey @Account Closed! These are great questions and for calculators I really enjoy the Bigger Pockets Calculator and also have an Excel spreadsheet that I used before using Bigger Pockets. I would be more than happy to send you the calculator. Specifically for Insurance I can tell you that Goosehead Insurance will go through the trouble of comparing insurance companies and bring you the company that provides the best rate for what you need. I would be more than happy to share my contact with you as well and as for the rest of your questions there is an investor meet up happening in College Station later today which would be a great place to get answers to these questions and any others you have. Let me know if you want more information and I would be more than happy to be a resource for you while you look at your investments!

    [email protected]979-739-0921
    Keller Williams Realty Brazos Valley522 Reviews
    View Page
    2Reply
  • Stephen Beck
    Member since 2020 · 10 posts · 7 votes
    5y

    My tenants pay their own gas, sewer and water. I have an agreement with the city to leave the utilities on when they vacate so I can get the unit ready for the next batch of students. Then I give the new tenants a deadline to have the utilities switched to their name. Usually Aug 5th.

    Also I like one payment for rent even though there are 4 room mates. It prevents one student from not paying while the others pay. You can't legally evict just the one non-paying student if all four signed the lease, you have to evict them all -  and that gets very costly and very messy! So, collect one payment each month...preferably online!

    3Reply
  • Kameron Yellin
    Specialist · College Station, TX (college station) · Member since 2020 · 45 posts · 35 votes
    5y

    @Jack Amheiser

    It all depends. Maintenance can be over estimated and I personally suggest it, seeing as the majority of CapEx should be covered by dues. In my experience here is CS you will be hard pressed to find a condo that will cash flow. Furthermore I don't like condos for the simple fact that I have limited control on dues, increases etc. BP has a good calculator. When doing a quick calculation on a property I use Income x .75 - debt service. This should give you plenty of maintenance money and give you a good starting point. As always do your own numbers and make sure you have a good real estate agent that specializes in investments either by trade or with personal experience. Reach out if you have any questions.

    2Reply
  • Account Closed
    OP
    New to Real Estate · Grapevine, TX · Member since 2020 · 4 posts · 1 vote
    5y

    @Kameron Yellin Thank you for your reply. I'm curious. From your experience, why are condos harder to cash flow in the CS market? Is it the associated HOA fees are too high?

    0Reply
  • Kameron Yellin
    Specialist · College Station, TX (college station) · Member since 2020 · 45 posts · 35 votes
    5y

    @Jack Amheiser

    Fee increase yes and they have been sold to (my research with FSBO sellers) normal people sold on the investment opportunity and they are trying to get their money back/ not lose after purchasing the place to save on their kids college housing that they purchased 4ish years ago.

    2Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free