All Forum Posts by: Daniel Hargraves

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Can someone help me understand the last line in the analysis over time chart? in year one it has a negative 10% annualized return and then in year two it says 7%. How is this calculated? I understand finding out ROI. annual cashflow divided by total investment. But i cant figure out how they are coming up with these other percentages at the end of the different years.

*This link comes directly from our calculators, based on information input by the member who posted.

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Hey fellow investors.  Im analyzing a self build and having a hard time understanding the analysis overtime.  It seems to be using the 50% rule to determine the annual cash flow. First of all.  I dont understand the 50% rule.  It shows a monthly cash flow of $230 after refinacing.  But the charts at the bottom of the analysis dont reflect this.  Showing instead an annual cash flow of -$8964.

Please help me understand.  I would like to present this to an investor and to the bank.  And i would like to understand what it means before i do. Thanks in advance.

*This link comes directly from our calculators, based on information input by the member who posted.

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*This link comes directly from our calculators, based on information input by the member who posted.

I have a hard time reading these reports. And being confident in how I have filled in all the info.  This house I’m hoping to put on airbnb.  Which is why the rent is so high.  The cash flow reflects self management.  If a cohost is taking 20% then this place would only cash flow 221$ per month after vacancy, cap ex, and maintenance.  Which is still great.    I guess I’m just wondering if anyone sees any red flags right off the start as well as if there is a resource on how to understand the final report.  Thanks.  

Hey fellow investors.  I am looking to property manage for a first time land lord in hopes to buy her house in the future.  She has moved out of province and has friends renting the place.  She will most likely take care of the general things between her friends.  So i have offered her my services when it comes to anything related to property maintenance, and i would will bill her according to the calls i receive. Rather than a percentage of her rental income.  

What I am looking for is a great property agreement to have in place between us.  If anyone can point me in the right direction that would be amazing.  

@Christopher Phillips

Ok, but how is the payment made on the principal considered a cost? Would that not be going towards equity? Since when you sell you won’t be left owing as much to pay off the loan?

@Christopher Phillips

Sorry. I wrote it in the wrong place. And it’s not showing in the post. My question is, in the holding cost breakdown, does the loan payment need to include both the Principal and interest? Or just interest? My assumption is just interest. Since the principal goes towards paying off the mortgage. But I wanted to double check

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*This link comes directly from our calculators, based on information input by the member who posted.

Oh wow! More people from Saskatoon.  Ive been hoping to network with more people from here.. Its in Riversdale

Thanks everyone for the advice.  I guess i am seeing a higher reno budget needed since my last flip went quite a bit over budget.  I am hoping to get it at least under contract with the intent to get my quotes together properly, at the same time get financing figured out.

As for the seller financing. I don't fully understand that route.  The first i heard it explained, it sounded amazing and i would love to do it some time.   Any good resources you can point me to to help me understand that route?

Hey guys Daniel here from Saskatoon, Canada,  this is my first post on bigger pockets. Looking for some negotiating tips.

I found a tired landlord selling a 4 bed 2 bath house. asking 225 and already gave us his bottom dollar of 200,000.  Based on my best comps (2 being one year old, and the other four months) range from 325-385. I'd like to offer him 185 but he said he's turned down an offer like that already. the house is vacant and he's owned it for 25 years.. Im guessing mortgage free.  

Anyone have any good scripts when dealing with older tired landlords??  Here is some negotiating power i have,  He's offered up another one of his house that doesn't have a for sale sign yet and said he'd give us a deal.  400 for both, similar house, but LOTS more work.  I don't think 400 is a deal id rather offer him 150 for the second.   not my first flip but first private sale.