Updated about 8 years ago on . Most recent reply
Deals seem to easy to find
I have one rental, and I have done one flip. I learned a lot from those deals, but I am new to investing. I am spending hours looking. I am finding several deals for buy and hold rentals that come up in growing markets. Using the BP Rental calculator the cash on cash ROI is coming over 18% at almost list price is this common? I found one at 43% ROI but it was pending by the time I called.
I am assuming around $30k for new carpet, paint and cosmetic repairs. I am looking on zillow for like local rental prices. Other numbers I am getting published information. I have used 4% for repairs and another 4% for capitol expenditures (more than what I saw on the example webinar). I am trying to be conservative with all my numbers. At this point it seems like I just need to find more funding to purchase more properties. Is there anything I am missing or a rookie mistake?
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It is hard to be accurate when answering this question because we are not talking about a specific property with real numbers but formula here. So far it sound fine. There a lots of properties where you can get good ROI once you leave CA. The 30 k for cosmetics sounds darn high, but if you are going to error that is a good direction to error in.