All Forum Posts by: AJ Smith

Hi @Joe Schaak,

Thanks for the input! I'm going into my last year at the University of Iowa, but I plan to accept a Job in the Greater Twin Cities Area after graduating next May.

Hi all,

I'm analyzing for 28% reserves (4/7/7/10 Vacancy/Repairs/CapEx/Prop. Mgmt) and am having a lot of trouble finding viable deals.

I recently added the 10% Property Management expense to my analyses, and once viable deals are now being completely gutted by the extra 10%.

For the HouseHackers and successful investors out there, do you analyze for a 10% PM fee? Do you self-manage and ignore the 10% in your analyses? How do you work around the additional 10% when working for viable deals?

@Jacob Johnson found out its on sale; 1 year for $49 - just subscribed! Thanks!

@Daniel Anshus ah understood, my mistake. That MLS number was a holdover from an analysis that didn't pass the sniff test.

Could you elaborate more on the Payne-Phalen point? The Crime Rating from Trulia is Low (tried to use the Minneapolis.gov site but there's so much information and I'm not sure how to best interpret it.) ---- is there another reason why this area isn't seen as a good area to invest?

@Daniel Anshus we may be looking at a different house.

On Zillow this house does not look like a tear down, it looks like its in decent condition but a little dated. Also its only been on Zillow for 5 days, not 200+.

Where are you pulling your numbers/info from?

@Jacob Johnson appreciate the feedback. I will stop taking listing rents at Face Value and start doing comps with other places in the area. 

ASSUMPTIONS

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Original Listing Price is $139,900. Offering $10,500 below asking price b/c that's where the numbers work, given $1100 in rent after a heavy rehab of the two units.

Heavy rehab implies budgeting for a new roof, updated kitchens, baths, paint, flooring.

St. Paul and Minneapolis rehabbers/ 203k househackers, hope to get some feedback from you. Specifically regarding your thoughts on the rents and the ARV, as I tried my best to estimate those based on Zillow comps.

Thanks,

AJ

@James Hamling could you put the pdf on here? I'm not a pro member so it seems they've restricted my access to looking at that analysis.

Thanks for the feedback James.

For my future reference, what would a good deal look like in your estimation? 

Is there a specific cash flow number? Equity number? DCR?

I'm trying to find workable deals in my analyses, so I definitely would like to fine tune them if you have any specific tips on what I should look for to improve my analysis skill.

Thanks for your time,

AJ Smith

Thanks for the feedback Steve.

Still a year out from moving to Minne. I won't be househacking in Iowa b/c my job will take me to Minne, but definitely looking into Long-Distance investing back in the Iowa Market.