Rental Property Investor · Boise ID + Pasadena, MD · Member since 2019 · 33 posts · 2 votes
7y
@Jaysen Medhurst Hi Jayden. Do you typically use 15% combined as a ballpark when weeding out properties? Obviously you’ll confirm the figures with an inspection, but curious what you do to analyze a lot of properties quickly.
Rental Property Investor · Muskogee, OK · Member since 2019 · 18 posts · 8 votes
7y
@Jaysen Medhurst Plan is conventional at 3% (bank said they can do it for owner occupant), live in it for 6 months to year then rent it out and start over. I will definitely bump up my repair and cap-ex numbers! We will probably manage our first few by ourselves and then find a manager after we get a decent sized portfolio. It's a forclosure so I'm expecting a bidding war with some other investors. In your opinion is it go? Thanks!
Rental Property Investor · Greenwich, CT · Member since 2015 · 4k+ posts · 2k+ votes
7y
@Nicholas Anderson, 15% is what I use in my pro forma analysis of most properties. I would adjust a bit if a place has been just renovated or, conversely, was very old and I was worried about a lot breaking. That adjustment is really only for the beginning of ownership. If you plan to own long term, over time you'll probably end up close to the 15%.
@Jordan Alexander, self-managing or not, always include that expense in your analysis.
If you're confident in your numbers (ARV, rents, renovation), then go for it. My math shows you closer to $90/month once your lease it up. That's not great cash flow, but considering you're only putting down 3%...
I am new to this and learning a lot still but it seems that based upon your estimated ARV you should be aiming to pay around $52,000 (ideally of course). Also based on Jaysen and his math of $90 a month after your mortgage is paid off you will be making approximately 1.27% on your investment which isn't a whole lot. But that is also assuming the value of the house remains the same.
I am also curious as to how you determined your monthly expenses.
Rental Property Investor · Muskogee, OK · Member since 2019 · 18 posts · 8 votes
7y
Guys just wanted to update you: I stuck my hat in the ring at 60k but other investors outbid me and it sold for 67K. Think they were a cash buyer as well. It's tough to find this first property. I want to hit a home run but also just want to get my feet wet with that 1st deal. So far I've made 4 offers and all rejected. I am learning some patience.. Lol