All Forum Posts by: Austin V Nguyen

The property is https://www.zillow.com/homedetails/2554-River-Rdg-Conroe-TX-77385/28719224_zpid/?

Here is my analysis:

Rental Income: $1,500

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Expenses:

Taxes: $168

Insurance: $35

Water/Sewer: $0 (Tenant Pays)

Garbage: $0 (Tenant Pays)

Eletric: $0 (Tenant Pays)

Gas: $0 (Tenant Pays)

Hoa: $67

Vacancy Rate: $150 ( I do not know what the actual percentage is, I just used 10% because that is what you put for one rental property in spring and I just multiplied it to the rent $1,500)

Repairs: $100 (Home has been recently renovated and I doubt there is anything that needs any repairs)

CapEX: $100 ( I don't really know how to calculate this! The only thing I know is that the house has been recently renovated and looks like from the photos it doesn't need any major repairs, I could be wrong but if you could show me how to calculate CapEX that would be great.)

Mortgage: $591 ( Buying Price: $95,000 and I put 20 % down so $19,000 )

Flood Insurance: $60 (This neighborhood always floods when it rains so I am a little nervous If I were to invest in this property, but I am just practicing my analysis. Also I am not too sure if this is the actual premium. I looked up average flood rate insurance yearly and it was $700)

Total Expenses: $1,351

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Cash Flow:

Rent: $1,500

- Expenses: $1,351

$150 cash flow

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Cash on Cash Return:

DP: $19,000

Closing: $2,000 ( I am not too sure about this neither, what is the average percentage for closing cost? Is it 1%?)

Rehab: $2000( I would probably just fix the garage door it looks kind of beat up and then do some landscaping, I am just overexaggerating rehab)

$2,628 ( Cash Flow Yearly ) % $23,000 ( Total Cash Invested ) = 11 % Cash on Cash Return

@Scott Brown Hey Scott He messaged me like an hour ago saying it might rain tonight and that tomorrow might be better. I am not sure if it is still happening today.

@Brian Mittelstadt Sounds good to me! 

@Marci Mayes The only thing I know is that the rentals you bought here in Montgomery/Conroe will appreciate like crazy.

@Jennifer Gill Thanks for the info Jennifer really appreciate it! Yeah I remember exon moving out a while back in Conroe, did not know they moved to Spring. It seems like Conroe and Spring is worth the investment since there are a lot of jobs around the woodlands and you said people are driving from Conroe/Willis which is a positive sign. I don't blame them its cheaper in Conroe/Willis then around the woodlands area. The only thing I am worried about is the property taxes, Its insane in Conroe!

@Theresa Harris Oh wow that is terrific Theresa good job starting young. How did you save up enough for cash reserves for vacancies, repairs, and other expenses? Did your parents loan you money? Did you work a part-time job? or were you just lucky enough you had great tenants who paid every month and had a low vacancy rate? That is a lot to handle while in college especially studying for exams while doing it!

@Theresa Harris I just can't imagine them already supporting me enough as it is. They are paying for the rest of my college tuition, health insurance, etc. I do not want to put them through the stress of another additional expense. I might have to ask though because FHA only requires only 3.5% for financing and that is a very small amount. The only thing that could cause this plan to backfire if my rental properties are vacant, tenants are terrible, or I miscalculated my analysis. Thanks for the tip though I will definitely ask them and see.

@Daniel Haberkost Yup sounds like a plan. I will soak in real estate podcasts and books like a sponge. I am also saving aggressively too living well below my means. Thanks for the heads up Daniel really appreciate the advice and piece of knowledge brother.

@Daniel Haberkost See I can't tell If I should wait till after college to invest when I make a steady income and then save up about $20,000 for a down payment for a property. The only problem is my income right now, I have a great credit score but I work at a part-time job that pays me $9.50 an hour and I only make about $600 dollars every month roughly. I will probably work less due to school as well so the figure will probably be a lot lower than that. How would I go about buying a property with very low income?

@Ryan Kelly Thanks for the recommendation Ryan! I will definitely check it out.