All Forum Posts by: Alex Jean Baptiste

Chris K. Sorry it took a bit. Thank you for the response. Why is it that we only want to account for vacancy rates at first? Is it because with smaller 2-4's we'd have the tenant taking on other expenses. (Utilities?) or is it just a starting point? Value based on comps in terms of rent or how much the properties themselves are worth?

So I'm still on the learning train and starting in September I will be back in school for my Masters. It's going to be a 3 course week tuesdays and thursdays in the evening. I have always had this goal to get it to become a therapist. But this Real estate life has taken over by storm. My next action step is to get my RE License. I am currently waiting for the class to start in 2 weeks. My plan is to take the class and hopefully tackle the exam before/in September. After a semester, come winter/spring I would like to tackle becoming an agent part time. In the mean time I'd like to keep learning what it entails to be an agent and where I would want to work. By some guidance I have learned that it's me in the position to choose what I want from the brokerage and I ideally want to be in a position to learn from someone more than just the earning split. So my question is, is anyone out there balancing school and being an agent? School and being an investor specifically? School, agent and side job? Hahaha I do not want to set myself for failure by taking on too much so so far I like my plan of getting the test out the way then focusing on school then diving back into RE after 4-6 months or up to a year.

Great action! Glad to hear of your success! When you went into this deal were there any setbacks? Anything more difficult or different than you thought before?

Hey Cole Congratulations man! Keep it up! Look forward to hearing of more success!!!

Sounds like a great idea! I live in Boston as well and am looking for as many connections as I can! a meet up would be great!

@Steve Bracero haha oh man the most basic thing ever is what would I offer. I guess I assumed that I would do the analysis first on what it was listed as being sold for and then work from there on an offer, but once I got down to the end and realized that I had looked at a property that was for sale, it made me lose that step. Yes the original plan is Multi's I kind of just clicked a random listing here so I can do the numbers. The rent number of 1800 I got from the zillow "zestimate." Ah you rock man glad to know I'm headed in a fair direction. I will have to start focusing on multi family analysis though.

@Ben Wilkins Income from Zillow on "zestimated" rent. Zillow has a tax assessment for each year. (is that the norm or is every 4 years the norm?) in 2017 it says $2,954. I think I googled PMI in Massachusetts to get the .5-1% but again I think I had this wrong because does the insurance part of the expenses mean the mortgage insurance or the home insurance itself? *face palm* and Steve pointed out there isn't pmi on conventional 20% down. So I just googled home insurance rates in Massachusetts and took the top three ranked which were
1. Amica: $691
2. Progressive: $1,145
3. Liberty Mutual $2,415
Average: $1,417

You both are clearly right about Property management. As a beginner I had it in my mind that I can't afford a PM just starting out and being that likely my first deal wouldn't be more than one property I imagine I would have more time to put towards it. I don't know jack though ahaha. So thank you guys. The 50% rule makes a lot of sense now to me, but having a tough time finding the rules of thumb to apply(even loosely) in my expensive areas. (Boston, MA) Will have to adjust.

@Charlie MacPherson @Steve Bracero could use your help hahaha 

Hey there BP! Hope all has been well! I believe I'd like to start practicing on analyzing deals just so I can really get used to that part of things. How do you guys suggest I go about that? Do I just pick a listing site (classic ones like redfin, zillow, realtor) lets just say zillow for this purpose. and we use Zillow and use a property like this https://www.zillow.com/homes/for_sale/house_type/5...

At the risk of looking like a complete idiot I am going to analyze this deal. haha So lets assume I'm not using the BP Calculator and using the BP Four square method instead. So

Box 1: income in example is 1800.

Box 2: Expenses:
- Taxes: 216/mo (2594/12)
- Insurance .5-1% of standard loan so lets say a 20% down loan would make the loan of this house 138k and .5-1% of that is 690-1,380 per year or $57.5-115 per month.
- Utilities: utilities are an interesting thing to me because everywhere I look it is assumed that the tenant is paying these but shouldn't one still have an estimate of what water, heat, electricity will average out to especially in the case of a house hack?
- Vacancy: (5% of rental) 90/mo
- Repairs: 50-100/mo
-CapEx: 100/mo
-Property Manager: $0 (at least to start)
- Mortgage: Used a mortgage calc and plugged in 138,000 at 4% interest as most things ive read right now in mass are between 3.7-4.2 so Monthly payments are $659/mo (700 for simplicity)

So expenses box would be 216+58+90+100+100+700= $1264

Box 3: Cash Flow= 1800-1264= 536

Box 4: Cash on Cash ROI:
Down payment: 34,000
Closing costs: 6,000 estimated
Rehab Costs: Arbitrary with no basis 7,000

47,000

So I admit here I've gotten to the end and realized I really messed up. I guess because this home just got foreclosed on its actually not for sale and the pictures of the property are blurred out. Damnit. I'm really sorry for wasting your time here wondering if there was any other place I went wrong?

But all things being equal and if my numbers were right: 536x12= 6432.
6432/47,000=.1368 or %13.68 I know this is completely wrong but if you guys could explain to me how I messed up on my first "real" deal analysis. Thank you very much. After hearing some feedback I will do another analysis here on a property that's actually for sale and hopefully get that right. ha

Steve Bracero Ken T. Thank you for the welcome guys! I hope things work out part time. The readings are motivating and I can't wait to take this class. It's with Pro Estate training institute in Randolph. Good reviews. No funny business haha. Excited.

Charlie MacPherson you got me there hahaha I was excited and thought oh sh*t that's a lot of money. Looked it up and shot down haha. Man I appreciate the plug. I'm going to have to look into it when the first step is completed. Really want to be the best agent I can be and that starts with learning from those who are doing it already. Added you guys to contacts to connect with in my REI scribble book hahaha. How long have you been there? Beginner question "what's would you say it's like being an agent in general?" Pros? Cons? And being an Agent/investor? Redgy Saint-Germain I absolutely will link up with you! Let me take a look at the next week or so if not I'll aim for the week after.