All Forum Posts by: Casey Miles

2% earnest deposit. I would never give a 10% nonrefundable deposit.

 We're probably slitting hairs and I'm probably wrong. I look at capex as improvements not r&m. Generally capital is used for improvements where an roi is associated with it. R&M is for roofs, leaks, AC repairs, etc. Capital would never be a regular category in my cap rate calcs.

I'd 've looking to spend low 190s on this one. What would be your # Logan?

I think you're definitely on the conservative side. Which is good but you don't want to be too conservative or you'll never buy anything :) 

In my experience, totally different market mind you, the 50% rule just doesn't hold true. Are you really going to spend $2500 in capital improvements each year or does it currently need work? I use a 5% vacancy rate and my actual vacancy rates are less than that. With your numbers it's a 5% cap witch I wouldn't do unless maybe it was in a high appreciation market and I had a 2-3 year exit. 

Using the categories I usually use when looking at property it's a 8% cap which most find desirable. I really try to be at a 10% cap but you have to hunt and hunt and hunt for that. If you think you can get slightly higher rents I usually run the numbers using the average of the actual rents and the anticipated rents.

I know I probably don't calculate the way everyone else does but it works for me and I consistently use the same parameters.

Hope this helps.

 I do the same thing. Works well.

Thanks for the replies. I do appreciate good tenants and have relatively good luck with my rentals. I am in the process of buying an 8 plex and will need to up rents once I close. They're about 20% under market. I just wanted to make sure there wasn't some type of data source everyone uses.

Is there a source (website) where I can research rental rate data? I rarely raise rents in my units and usually wait until a vacancy occurs, research rental rates via craigslist, etc, and then rent for whatever the market will bring.

I recently bought a duplex where the previous owner raised rents almost annually by 2.5-3 percent each time. Obviousely it depends on the market but what does everyone else do? Scheduled increases? Wait for vacancies?

I'm in the Phoenix market and have both MF and SF.

Thanks everyone,

Casey

30 year am on my helocs too. It's the bank I mentioned before in our messages.

Martin,

I believe in your previous post you found the subject property on the MLS? Is that the case with this one as well?

Thanks,

Casey

Hi Josh,

It's different for primary so it doesn't directly answer your question but on my investment properties I pay a 1% fee (on the heloc amount) plus appraisal and a $170 title doc fee. Terms are prime plus two points, interest only payments for 36 months. After the 36 months if I still had a balance they would look at extending it but if have to pay fees again. They'll do up to 75% LTV.

Welcome Daniel. I'm relatively new here as well. I started much like you. Focused on building the passive income first now I'm ready to expand into fix/flip.

Tons of great info to be had here!