All Forum Posts by: Brandon Duff
Brandon Duff has started 28 posts and replied 116 times.
Post: HELP! - Can't find my first property!!
- Investor
- Dallas, TX
- Posts 120
- Votes 24
anytime! I am in california investing in Vegas myself @Daniel Rubenstein
Post: HELP! - Can't find my first property!!
- Investor
- Dallas, TX
- Posts 120
- Votes 24
summerlin and south summerlin tend to be around 250-500k for properties.. You might want to drive for dollars and find a discressed property.
Most will rent for 1200-1800.
Still under 1%
Post: Good Deal? Leverage? Please advise
- Investor
- Dallas, TX
- Posts 120
- Votes 24
Thanks @Clint Kreider Mid Days are usually best for me.. lunch time..
Post: Good Deal? Leverage? Please advise
- Investor
- Dallas, TX
- Posts 120
- Votes 24
@Clint Kreider as much as I would love to, my training schedule is typically 430am to 10am and 3pm to 9pm :-(
Post: Good Deal? Leverage? Please advise
- Investor
- Dallas, TX
- Posts 120
- Votes 24
thanks @Ned Carey
Post: Good Deal? Leverage? Please advise
- Investor
- Dallas, TX
- Posts 120
- Votes 24
Major things.. Seller fiancing
2% interest rate
40k down 29% down
1100 rent
maintenance 10% a month of rent ( 1440 yearly)
13% vacancy
Tax is 1200
Insurance is 1200
Post: Good Deal? Leverage? Please advise
- Investor
- Dallas, TX
- Posts 120
- Votes 24
I think i screwed up on the last one.. Here is what i was looking at..
| Cost Assumptions | |||
| Purchase Price | $140,000 | ||
| Land Value (25%) | $35,000 | ||
| Building Value (75%) | $105,000 | ||
| Improvements | $0 | ||
| Closing Costs | $0 | ||
| Total Cost | $140,000 | ||
| Annual Revenue Increase | 2% | ||
| Annual Operating Expense Increase | 2% | ||
| Monthly | |||
| Revenues | |||
| Rental Income | 1,200 | ||
| Vacancy/Loss Rate | 13.0% | ||
| Vacancy/Loss Value | (156) | ||
| Gross Income | 1,044 | ||
| Expenses | |||
| Property Taxes | Annual | 1,200 | |
| Insurance | Annual | 1,200 | |
| Maintenance & Repairs | Annual | 1,440 | |
| Utilities | Annual | 0 | |
| Advertising | Annual | 0 | |
| Administrative | Annual | 150 | |
| Variable Cost PM | (% Income) | 12% | |
| Fixed Cost PM | Annual | 0 | |
| Other 1 | Annual | 0 | |
| Other 2 | Monthly | 0 | |
| Total Expenses | |||
| Expenses as % of Gross Income | |||
| Net Operating Income (NOI) | |||
| Cash Flow | |||
| NOI (Cash Available) | 586 | ||
| Mortgage | 367 | ||
| Total Cash Flow | 219 |
| Financing Assumptions | ||
| Downpayment | 29% | |
| Finance Amt | $99,400 | |
| Downpayment Amt | $40,600 | |
| Interest Rate | 2.0% | |
| Mortgage (Years) | 30 | |
| Mortgage Payment | $367 | |
| Cash Outlay | $40,600 |
| CF & ROI (Doing My Own PM) | |
| Annual Cash Flow | $4,129 |
| Cash ROI | 10.17% |
| Total ROI | 16.19% |
Post: Good Deal? Leverage? Please advise
- Investor
- Dallas, TX
- Posts 120
- Votes 24
@Ned Carey i understand you are using a rule of thumb.. and i thank you for your post. However.. You looked at ONE of my questions.
| Cost Assumptions | |||
| Purchase Price | $175,000 | ||
| Land Value (25%) | $43,750 | ||
| Building Value (75%) | $131,250 | ||
| Improvements | $0 | ||
| Closing Costs | $0 | ||
| Total Cost | $175,000 | ||
| Annual Revenue Increase | 2% | ||
| Annual Operating Expense Increase | 2% | ||
| Monthly | |||
| Revenues | |||
| Rental Income | 860 | ||
| Vacancy/Loss Rate | 13.0% | ||
| Vacancy/Loss Value | (112) | ||
| Gross Income | 748 | ||
| Expenses | |||
| Property Taxes | Annual | 1,016 | |
| Insurance | Annual | 1,200 | |
| Maintenance & Repairs | Annual | 900 | |
| Utilities | Annual | 0 | |
| Advertising | Annual | 0 | |
| Administrative | Annual | 150 | |
| Variable Cost PM | (% Income) | 12% | |
| Fixed Cost PM | Annual | 0 | |
| Other 1 | Annual | 0 | |
| Other 2 | Monthly | 0 | |
| Total Expenses | |||
| Expenses as % of Gross Income | |||
| Net Operating Income (NOI) | |||
| Cash Flow | |||
| NOI (Cash Available) | 386 | ||
| Mortgage | 685 | ||
| Total Cash Flow | (298) |
This is what it would be from a LENDER...
NOW.. onto my question.. What should i offer if they are doing SELLER financing.
| Cost Assumptions | |||
| Purchase Price | $175,000 | ||
| Land Value (25%) | $43,750 | ||
| Building Value (75%) | $131,250 | ||
| Improvements | $0 | ||
| Closing Costs | $0 | ||
| Total Cost | $175,000 | ||
| Annual Revenue Increase | 2% | ||
| Annual Operating Expense Increase | 2% | ||
| Monthly | |||
| Revenues | |||
| Rental Income | 860 | ||
| Vacancy/Loss Rate | 13.0% | ||
| Vacancy/Loss Value | (112) | ||
| Gross Income | 748 | ||
| Expenses | |||
| Property Taxes | Annual | 1,016 | |
| Insurance | Annual | 1,200 | |
| Maintenance & Repairs | Annual | 900 | |
| Utilities | Annual | 0 | |
| Advertising | Annual | 0 | |
| Administrative | Annual | 150 | |
| Variable Cost PM | (% Income) | 12% | |
| Fixed Cost PM | Annual | 0 | |
| Other 1 | Annual | 0 | |
| Other 2 | Monthly | 0 | |
| Total Expenses | |||
| Expenses as % of Gross Income | |||
| Net Operating Income (NOI) | |||
| Cash Flow | |||
| NOI (Cash Available) | 386 | ||
| Mortgage | 627 | ||
| Total Cash Flow | (241) |
| Financing Assumptions | ||
| Downpayment | 3% | |
| Finance Amt | $169,750 | |
| Downpayment Amt | $5,250 | |
| Interest Rate | 2.0% | |
| Mortgage (Years) | 30 | |
| Mortgage Payment | $627 | |
| Cash Outlay | $5,250 |
Again not great..
Now.. IF i put a HUGE deposit ( they only want 5000, and I'm willing to put 40k
| Cost Assumptions | |||
| Purchase Price | $175,000 | ||
| Land Value (25%) | $43,750 | ||
| Building Value (75%) | $131,250 | ||
| Improvements | $0 | ||
| Closing Costs | $0 | ||
| Total Cost | $175,000 | ||
| Annual Revenue Increase | 2% | ||
| Annual Operating Expense Increase | 2% | ||
| Monthly | |||
| Revenues | |||
| Rental Income | 860 | ||
| Vacancy/Loss Rate | 13.0% | ||
| Vacancy/Loss Value | (112) | ||
| Gross Income | 748 | ||
| Expenses | |||
| Property Taxes | Annual | 1,016 | |
| Insurance | Annual | 1,200 | |
| Maintenance & Repairs | Annual | 900 | |
| Utilities | Annual | 0 | |
| Advertising | Annual | 0 | |
| Administrative | Annual | 150 | |
| Variable Cost PM | (% Income) | 12% | |
| Fixed Cost PM | Annual | 0 | |
| Other 1 | Annual | 0 | |
| Other 2 | Monthly | 0 | |
| Total Expenses | |||
| Expenses as % of Gross Income | |||
| Net Operating Income (NOI) | |||
| Cash Flow | |||
| NOI (Cash Available) | 386 | ||
| Mortgage | 498 | ||
| Total Cash Flow | (112) |
| Financing Assumptions | ||
| Downpayment | 23% | |
| Finance Amt | $134,750 | |
| Downpayment Amt | $40,250 | |
| Interest Rate | 2.0% | |
| Mortgage (Years) | 30 | |
| Mortgage Payment | $498 | |
| Cash Outlay | $40,250 |
Still negative..
However what If i offer just over what they own on the loan?
| Cost Assumptions | |||
| Purchase Price | $140,000 | ||
| Land Value (25%) | $35,000 | ||
| Building Value (75%) | $105,000 | ||
| Improvements | $0 | ||
| Closing Costs | $0 | ||
| Total Cost | $140,000 | ||
| Annual Revenue Increase | 2% | ||
| Annual Operating Expense Increase | 2% | ||
| Monthly | |||
| Revenues | |||
| Rental Income | 860 | ||
| Vacancy/Loss Rate | 13.0% | ||
| Vacancy/Loss Value | (112) | ||
| Gross Income | 748 | ||
| Expenses | |||
| Property Taxes | Annual | 1,016 | |
| Insurance | Annual | 1,200 | |
| Maintenance & Repairs | Annual | 110 | |
| Utilities | Annual | 0 | |
| Advertising | Annual | 0 | |
| Administrative | Annual | 150 | |
| Variable Cost PM | (% Income) | 12% | |
| Fixed Cost PM | Annual | 0 | |
| Other 1 | Annual | 0 | |
| Other 2 | Monthly | 0 | |
| Total Expenses | |||
| Expenses as % of Gross Income | |||
| Net Operating Income (NOI) | |||
| Cash Flow | |||
| NOI (Cash Available) | 452 | ||
| Mortgage | 367 | ||
| Total Cash Flow | 85 |
| Financing Assumptions | ||
| Downpayment | 29% | |
| Finance Amt | $99,400 | |
| Downpayment Amt | $40,600 | |
| Interest Rate | 2.0% | |
| Mortgage (Years) | 30 | |
| Mortgage Payment | $367 | |
| Cash Outlay | $40,600 |
| CF & ROI (Doing My Own PM) | |
| Annual Cash Flow | $2,094 |
| Cash ROI | 5.16% |
| Total ROI | 11.17% |
Post: Good Deal? Leverage? Please advise
- Investor
- Dallas, TX
- Posts 120
- Votes 24
Not whole selling.. Since I'd be keeping it..
If the property loan is 140.. How much over should I offer? And would it be worth it for a buy and hold
Post: Good Deal? Leverage? Please advise
- Investor
- Dallas, TX
- Posts 120
- Votes 24
A guy is trying to sell his moms property.
Local Properties are around 180k
He wants 175k
Mom owes 140k on the loan.
Downpayment they want is 5000
I have about 40k ( leverage?)
Rent in the area is 1100
No Agent will be involved.
Zilpy shows:
Rent Estimate (per month)$1,100 (0.73 /sqft)
Rent Low/High (25th,75th %)$1,000 - $1,350
Local Renter Density16% Renters
Vacancy rateLocal: 13.0%
Property Tax is just over $1000
They said they will charge 2% interest rate.
My lender has me at 4.75%
Cashflow should be around 154 for the place?
Should I just offer just above the loan?
How does one do it without a mortgage?
Clerks Office? Etc?
Would this be considering Wholesaling.. Reading this in No money Down book lol.