All Forum Posts by: Chad Doerr
Chad Doerr has started 1 posts and replied 6 times.
Post: Realistic cash flow on SFR in Louisville?
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- Votes 1
Quote from @Erik Hitzelberger:
Here’s some guidance on the first part. I group properties by goals rather than some arbitrary opinion of neighborhoods.
(A)ppreciation - primary goal is long-term wealth building. Expected appreciation in the 5-6% range, net income is $0-100 per month. These type properties often require you have a good reserve fund
(B)oth - lower appreciation (4), but more cash flow ($100-200)
(C)ashflow - still appreciate (1-3%) and produce ($200-300) in net income
(D)isposable - no expected appreciation, $300+ Cash flow
Of course you will find some variance, especially with level of rehab. Certain niches like student rentals or Airbnb may also generate more cash in the A/B ranges. It just takes more effort. Overall though, these numbers are easily attainable in Louisville.
@Erik Hitzelberger I love the way you broke this down. Five years later, I'm curious if any of these numbers have changed. Are there specific Louisville zip codes I should be looking at if I want "Both"?
Post: Realistic cash flow on SFR in Louisville?
- Posts 6
- Votes 1
@Micah Mcarthur I'm reading this post five years later and curious if you ever pulled the trigger on your first investment property and what you learned along the way.
@Llewelyn A. - Great question. My cousin will not be on the deed. It’s only my wife and I.
I like your idea of negotiating a fee to be paid at closing.
Still looking for a local CPA who is well versed in real estate. Seems to be a valuable relationship as I start my investing career.
I don't yet have an LLC Erickson. This is just a handshake deal with a person I trust. But I want to communicate expectations well before we start the project.
I'm brand new to real estate investing and have just put my first house under contract to fix and flip. The project will be a 50/50 partnership with my cousin who will handle the majority of the renovation as I'm out of state (though I plan to be as involved as possible while being 150 miles away).
I need help understanding the finer details of how a 50/50 partnership works, knowing that I'm carrying 100% of the financing and my cousin will handle the majority of the renovation work? My biggest question is whether or not I will shoulder the entirety of what could be a 30-40K capital gains tax or is that somehow split as well?
Looking to leverage the wisdom and experience of this network to navigate this partnership and get this first deal under my belt.
Post: Renting Out Your Basement - Do's and Dont's
- Posts 6
- Votes 1
Did you ever find what you were looking for in regards to contracts for your basement rental? I'd be curious as I'm moving in that direction myself.