All Forum Posts by: Trey Leigh

Gig'em Aggies
'89
I love college football season.

Yes Sir, pilot since 1991, dual rated, IP in rotor and ASEL. Been flying both for Fed govt .since 1998. AS350, UH-1, OH-6A.
Lots of pilots on here!

Thanks Jon, well my offer was 69% of list price, so I don't know if they will go that low, but it will work well for me if they do. Bad part is I only have enough cash for one deal and there is another that I'm considering that is a little less appealing, but I believe a good deal regardless, waiting for HUD I may lose both.

Thanks Shane, guess there is no magic formula.

How long does a HUD property have to be listed for them to take something lower than 85% of asking price? I recently bid on a HUD home that was 29K, they countered with $24650 (which is 85%). It is in the "extended" period and bids are opened on a daily basis. How long till their formula allows them to go lower?

Damn you guys are quick, Dion you are right, all the numbers were there, Nathan I would love to hear if you're better or worse than the 50% rule.

Ok, Nathan bear with me because I'm new, but your taking in 5725/month is gross rents and have P&I payment of 2228 which leaves $3497/month for expenses and cash flow. Based on the 50% rule you have a cash flow of $634/month... correct? Since I dont know your initial investment I don't know the ROI on your money, but do you find the rule to be correct in your situation? Is my math skewed?

Thanks John, thats what I originally thought, guess I'm just mixing up terminology that is new to me.

Ok Dion, I got it, your return equals cash flow plus gain when you bought the property, i.e. buying under market value..right?

Nathan, thats incredible, I need to learn to find deals like that. Are these typically SFH's or apartments etc?

Thanks for the insight

Dion, again thanks for the response. I understand your reply except for one part.
You state "I look at yield or the net cash flow divided by invested capital and return or the net gain from the sale of plus the yield".

I've been figuring my return as net cash flow divided by invested capital as well, but don't understand the "and return or net gain from the sale of plus yield part.

Thanks again for lending your advice on the other thread. I agree the rent increase would help, unfortunately i left that money on the table eager to rent the property.