All Forum Posts by: Austin V Nguyen

@Daniel Haberkost yeah I currently work part-time at a restaurant and have a credit score of 756. That is amazing man! How did you start and learn!? That is a lot of dedication for working full-time, studying for school, and then doing real estate! I salute you brother.

Hello I am 21 years old and am about to turn 22 in November. I will be transferring from a community college to the University of Houston later in the spring and have about $7,000 saved up and hope to have $10,000 or $9,000 by the end of this year. My college is mostly covered by financial aid and my parents will cover probably around $2,000-$3,000 for the rest. I currently live at home with them and just pay my car insurance which is about $300 each month. I am reading Brandon turner's real estate investing book and was wondering should I use an FHA loan with 3.5 percent down to buy a multi-family home near campus and live in one of the units for a year and then rent the others out to pay for my expenses and start gaining equity early on in my life? I am trying to soak in as much knowledge as possible to be ready to purchase my first property, so If you have any advice or knowledge you can give to me that would be very much appreciated!

@Ryan Johnson I will likely hire a property manager even though I know they take about a 10% fee every month, but we will see once I calculate the expenses and operating income. 

@Tim Herman Okay gotcha I really appreciate the info and help Tim! Much appreciated

Ah okay I see I understated the capital expenditures. I used Brandon Turners The Quick and Dirty Way method on Analyzing a property. I am just a little confused on the Vacancy rate and calculating the capital expenditures. So when buying a property for a certain amount I should use the 1% rule for finding out the max purchase price? 

Hello I am currently a 21 year old trying to practice doing rental analysis on rental properties mostly on duplexes and some SFH. I found a multi-family home on homes.com and here is the link. https://www.homes.com/property... I did an analysis with the bigger pockets rental calculator and it says the monthly cash flow is $730 a month and the COC ROI is 4.87%. This doesn't seem right because I watch Brandon Turners real estate videos and the COC roi should usually be in the 8% - 12% range, but 12% is where you should be aiming for. How is it that the monthly cash flow is so high, but the COC roi is so low? am I calculating something wrong? Here is what I put in the calculator -

- 20% down of $220,000 so my down payment is $44,000 

- Purchase closing cost of $4,000 

- The mortgage rate of 4% with a 30-year term loan 

- Property management fee of 10% a month 

- The rent charged for a month $1,650 

- Property tax $220 a month 

- Insurance $77 a month 

- Repairs maintenance a month 5% 

- Vacancy rate a month 5% 

- Capital Expenditure rate a month 5% 

- The tenants will pay electricity, sewer, gas water, HOA fees, and garbage

Can someone tell me If I miscalculated something or did something wrong? It is a duplex property in Houston, tx with 4 bedrooms