All Forum Posts by: David O.

@J scott

so if we use 8% as a vacancy rate and 3% as a legal/eviction/lost rent rate: those two would put us at 11% annually. Is that overly aggressive or prudent in your opinion?

Hi There,

I am working through some due diligence and I am wondering if you guys use any percentage of rent as a hedge against evictions? I plan to properly screen tenants so I guess I am just wondering if you guy factor that in as an expense as your working through your numbers?

Part two: In this specific deal I am looking at doing a rehab. It would cover most of the basics floors, paint, appliances, new toilet etc. What do you use for an ongoing maintenance number and cap ex number?

Thanks!

Is $260 per month typical for this area in condo fees?

@Sharad M. Really enjoy seeing all these pics. Hope to see how all the numbers come out at the end of the project. Know your going to kill it!

@Kristin Holmes Great question I was wondering about the same thing.

@Jonna Weber

@Shawn Mcenteer Thanks to both of you for the response that makes a lot of sense.

Loved the episode...

@Engelo Rumora Where would you recommend looking for those deals?

Thanks

Hi - I am new to evaluating deals so any feedback is appreciated:

My goal here is a buy and hold- seeking cash flow:

?Purchase Price $30,000

?Rehab – $35,500

?Closing cost $2,500

?Total investment $68,000

Monthly

Rental Income $850

Expenses:

Property Management $85

Property Taxes $22

Insurance $60

I am plugging it into the rental spreadsheet and with 8% vacancy loss plus $2,000 a year in additional repairs I come out with:

8% cash return on investment.

Is there a level of return I should be seeking if I am looking for primarily cash flow properties?

Thanks for your feedback.

@Bill Gulley Thanks . I appreciate your advice.

Bob,

Thank you for your response. That is massively helpful. When I look internally I think the most important thing is the 20k per month. The cash flow in my opinion = time freedom. With the cash flow as the primary objective what would you recommend as a strategy?