All Forum Posts by: Akpedje Akoussah

Hello everyone,

We are still pretty new to REI, but we have bought a buy&hold property 2 years ago with 5% down which is currently generating:

8.60% Cash on cash ROI and $93.77 Cash flow see https://www.biggerpockets.com/...

We have an extra 40k available right now and been looking for some good deals but have not found any yet. 

(Option A) So we were wondering if we should perhaps invest 23k back into that rental and increase the cash flow. If we do, we will have :

12.86% Cash on cash ROI and $248.97 Cash flow https://www.biggerpockets.com/...

(Option B) Now that I am typing this question, it occured to me that we could spend $500 on an appraisal to try to remove the PMI which is around 55$ each month and our cash flow will increase to about $143 per month.

Which option should we pick? Is there a better strategy? Thank you for taking your time to reply.

@Jaysen Medhurst wow those are awesome numbers. I got some more digging to do around here :D to find properties with those numbers one day.
Here rent is not that high so, I play will the BP calculators to familiarize myself and just to see which purchase price will bring those kinds of numbers. I have to find a killer deals to achieve that but I understand they are out there if you keep looking.  Thanks again for sharing with me. 

Thanks, @Jaron Walling and @Jaysen Medhurst for the reply. I'm new and was going with the safe 50% expenses. Yes, rent in the area can be in the $750-$850 range. The place has actually been remodeled recently. CapEx and repairs should just be average from what we know. I'll be sure to add water and sewer and missing expenses.


@Jaysen Medhurst what is your guideline for CoC? Thanks

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