All Forum Posts by: Christopher Hodum

Originally posted by @Michael Wentzel:

@Christopher Hodum

Welcome to Bigger Pockets! And congratulations on jumping into Real Estate Investing.

I factor 10% for vacancy, 5% for cap ex, 10% for maintenance and 10% for property management. 35% x $1250 is $437.50 per month. That would put you in the red and it would be too slim for me to hold. However, I own older homes in low-income neighborhoods and I use a property manager. So if you self-manage, you'll save yourself some cash. If the home is newer and in a nicer area (sounds like it), your maintenance and vacancy are likely be lower. So it might work. You can only find out by trying. I hope it works well for you.

Mike

I will be managing the property myself. I've already shopped around for a manager and the two in my city that responded charge 20% per monthly rent. Pretty hefty. The house is a 2006, along with all the other homes in this development. It sits at the top of a cul-de-sac. Minimal traffic. Thanks for the input, I may need to adjust my expenses, to be more conservative.

Originally posted by @Zach Liu:

There are a few spreadsheets on this website that will help you well. Put your numbers in it and see what the results are.

http://www.biggerpockets.com/files/user/Mister4clo...

http://www.biggerpockets.com/files/user/SpiralLoxo...

Thanks Zach Ill check into those.

Hey Biggerpockets Members,

I am currently in the process of renting my first home that I purchased. Below is my analysis.

Mortgage, Property Tax, Home Ins.- 830

HOA- 80

Garbage- 15

Lawn Maintenance- 25 

Vacancy- 10%

Repairs- 10%

12month leases

House Details

3Bed 2Bath 2Car Garage 1450SQFT in Florida

Inside a partially gated community. No front gate. HOA will be installing one this year.

Rental Comps in my area - 1100-1400 none are inside gated communities.

Rent Charge- 1250

Gross Annual Revenue- 15,000

Vacancy- 1,110

Repairs- 1,110

Gross Expense- 11,400

Net Profit(Before repairs/Vacancy) - 3600

In advance thanks for your help and time.

Chris

Hey Everyone, I have just put my first house I bought on the market. It was a foreclosure when I bought it. Needed paint, the first owner never painted any of the walls. The roof needed some minor repairs where the plywood separated from each other. Set me back about 2,000. My predicament is we have a offer lower than we want. And have countered. But we also have an open house coming up this weekend. I'm hoping this will bring up some more offers. And maybe bid up the price. Or should we accept the offer if we get to an agreeable price?

Orlando and Gainesville, both have major colleges with a huge student attendance. Amongst a ton of tourism. Great areas, but the market has risen quite a bit for buying and hold.

Originally posted by @James Wise:

@Christopher Hodum

welcome to the site.

Were are you looking to buy these rentals? Local to you I assume?

Yes I am. Preferably within 2 or 3 hours of my current residence. That way I can manage them and begin to learn by more of a hands on approach. 

Hey Everyone, I have been reading through the forum for some time. As well as listening to the podcast, and read through a few books. I am planning on getting into buy and hold properties. Rentals, single and multi. I'm excited at how much help this forum provides and to join the community.