Buy and Hold Single Family

2 Replies

We are purchasing 5 cash flowing properties as a package from one seller. Wanted to have more experienced eyes look at our analysis. Owner a burned out land lord. Some have new roofs, HVAC systems.

Total Rents: $3,250 Market Rents: $3850

Total Purchase Price: $139,050 Average price per house $32k

Expenses: $2,379 

Deferred Maintenance: $15,000 

Hi Will,

So to my understanding, cash flow would be like 1471? I got that number by subtracting market rents-expenses= 1471

Is this right? Because if it is, then my ears are ringing ching,ching, CHING!

Hi Sandy

That's correct. I have a private lender that wants to put in part of the capital for acquisition short term. I wondering if I should give him an incentive for holding the capital for 24 months? I thought if we offered him $5k bonus at 24 months, he would be motivated to let his capital work for that period. Any thoughts?