@Rashad Luckett Nice job and the pictures look great! Thanks for sharing. I'm new to investing and seeing these are very inspirational.
I just completed my first buy and hold, and it was very minimal in rehab, at only about 5k in work. I'm looking to get my feet wet with something a bit more substantial.
Can you help me understand your numbers to better evaluate deals?
1,125/mo rent =
+13,500/yr
-1,125 vacancy
-1,350 repairs/capex (10%)
-7,960 mortgage (110.5k @ 6%)
= 3,335/yr remaining for taxes and insurance, or about 2.5%
Are your taxes and insurance incredibly low in Savannah or did I miss something on my math? Thanks for your help in understanding these types of deals!
Eastern Shore MD · Member since 2018 · 139 posts · 79 votes
8y
@Rashad Luckett great job! Where did you find the deal? Love the interior colors, what are they? What did your HVAC run you? Did you do any work yourself?
Savannah, GA · Member since 2016 · 58 posts · 108 votes
8y
@Peter M.
I did some simple items like light switches and outlets. Some consistent areas of cost savings were the flooring and plumbing. The carpet came in at about 1.70/sqft installed from home depot. Plumber is my secret weapon. That repipe should cost 3-5k. He did it for 1200.
Savannah, GA · Member since 2016 · 58 posts · 108 votes
8y
@Adam H.
Mortgage is off as this is a line of credit not a mortgage. It's interest only and I only pay for whats in use. It's also difficult to calculate because this will be spread across multiple properties because I will use this same money on other deals.
My repairs/capex are typically half of what you have because of the extent of the rehab. All of the big ticket items that could need repair are brand new.
Mortgage is off as this is a line of credit not a mortgage. It's interest only and I only pay for whats in use. It's also difficult to calculate because this will be spread across multiple properties because I will use this same money on other deals.
My repairs/capex are typically half of what you have because of the extent of the rehab. All of the big ticket items that could need repair are brand new.