All Forum Posts by: Account Closed

@Dan Falcon

How much did you purchase for? 80k

How much were repairs? 27k

What did the home appraise for? 155k

How much is the home rented for? 1350/mo

How much $ were you able to get back after delayed financing and at what % rate? I made about 8k at first (hard money) closing, and paid about 2.5k at refi (to conventional) closing.

How much are your yearly taxes? They were around $15 in 2018 due to an exemption the previous owner had. They are expected to be $2,341 in 2019 based off of tax appraisal received in March of 2019.

How much is your yearly insurance? $1,170/yr

What is your expected vacancy rate? - Would love some suggestions on estimating expected vacancy rate!

How much is your PM costing you? - Currently looking into the many PM's in Houston to see which is a best-fit. There are quite a few that have been around for 8+ years and have A+ BBB ratings and good Google reviews. Any suggestions for PMs that cover full management as well as full eviction costs for 10% or less would be greatly appreciated!

Honestly after going over these numbers again in detail (thanks to you guys asking questions) I am thinking I might just sell this property as soon as my current tenant's lease is up and put the cap gains liquidity towards deals that have much higher cash flow (factoring in things like increased taxes after rehab, potential vacancy, and PM)!

@Caleb L. Thanks! Forgive the brevity in my deal description. I am new to this platform so am still figuring out all of the components this forum has to offer.  

The parameters wouldn't let me input zero or negative cash invested, so I just input the lowest amount possible ($1). I actually made a bit of cash at closing. 6.17% Cap Rate. Cash flow $411/mo ($4,932/yr) without factoring in vacancy, etc.

Investment Info:

Single-family residence fix & flip investment in Houston.

Purchase price: $80,000
Cash invested: $1
Sale price: $137,000

Zero down. Used hard money.

Investment Info:

Single-family residence buy & hold investment in Houston.

Purchase price: $80,000
Cash invested: $1

Zero down, infinity returns.

Thanks for the tips Cara! Very helpful for me right now. Do you mind clarifying what you mean by "an offer less than 10% will backfire on you"? Do you mean an offer that takes over 10% off of the asking price, or an offer that is 10% of the asking price? (E.g. If the asking price is 100K, do you mean 90K or 10K?)

Thanks!