All Forum Posts by: Deb R.

@Jaysen Medhurst thank you so much for your thorough feedback. I will definitely make adjustments to my calculations in the future based on your response.

 Yes, pay less and increase rent seems to be the solution or house hack so that won't work for me.

I do not find anywhere that says it is already rented. 

The expenses are what I found from the listing the agent gave me and other research.

I am not sure the valuation is right at all nor am I sure of most of my numbers as I am still new to REI and doing calculations on properties. That is why it was posted here for creative advise but it only seems to be a house hack possibility.

Thanks Michael for the response and seemingly confirmation that this is not a deal for me.

@Jaysen Medhurst I know it won't work the way it is but as I said the rents are low according to what I found. To get it to average market rents would increase income by $560 (cash flow to $310.07). If the leases happen to be ending within a month or two and I have reserves to carry the place those two months and am able to get the purchase price down I was thinking maybe it could be a deal. I understand it would be taking a bet that the rents could be raised to that level with either the existing tenants (not likely they would take that increase well) or new ones so I ask what numbers would make it worth the risk?

As for your concerns with the expenses:

• Vacancy may be closer to 8%, depending on the market. I do like the more conservative number
• Repairs and CapEx, I figure 15% combined. I can bump that up too
• Insurance looks very high. Talk to a local insurance agent. I did go with the highest and will get a quote if I can get the numbers more desirable
• What about house utilities? On a duplex the water/sewer is usually paid by the landlord (not always). I would of course need to verify that with a viewing and double check what the listing said
• Lawn care? I would handle that myself
• You should always plan for some initial repairs. It looked very well kept but how much would you suggest before going onsite?
• You're unlikely to get a rate as low as 4%, unless you're going to owner occupy. See, another thing I didn't know, any suggestions here?

Thank you so much! I will adjust my numbers.

Dropped purchase price $5000 to $250,000

Added estimate repair cost of $1,000 (I heard that amount in a webinar I believe)

Loan interest rate to 5% (until I get further info)

Increased rent $1,130 x 2 units = $2,260

Vacancy to 8%

Repairs and Capex to 7.5% to total 15%

Monthly cash flow now $29.56 (woohoo I'm in the green)

Ok so I guess still a no go, oh well. Good night.

From what I found on rentometer.com the rent for this place might me little low so from what I have read I should reduce the offer price for the property until it cash flows? I am also unsure of my numbers, I mean the taxes should be correct since I went to the county's website but insurance, capex, repairs, etc are estimates that I have no confidence in how to estimate. If I think I will actually put a bid in then I will contact my insurance company for pricing but for now I have used the highest estimate I could find on the listing sites. For management, I put 10% but will probably end up being 9% if I understood the pricing I've seen locally. Any information in greatly appreciated, thanks.

View report

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

View report

This property was sent to me as a possible investment. I did the calculations under rental (buy and hold) as that is what I would do with it. I think it was meant as a hack but it is too far away from where we want to live. Is there a way to make it cash flow without hacking or should another strategy be used? It doesn't seem to need any work so I cannot see another option. Anyone's thoughts please?

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

Very interesting conversation, would anyone ever use Bath Fitter? Is this product ever an option? Why or why not?

Thanks @Mitchell Jaworski for your response. I will do some research on JVs. Do you have any ideas how much I would need to put up to make it a beneficial deal for someone?

 wireless within the dwelling yes but wired to the dwelling. Isn't 5G supposed to make all the light poles and such access points?

I was wondering if it would be possible to find someone to help me figure out how to price properties and repairs and I invest a little in their projects? Maybe I go with them when they look at properties, would that be too intrusive? Maybe not intrusive if I am putting some money down with them? Any tips for finding someone and how to go about doing the financial agreement so I can make a little profit while learning and supporting the REIs project? What are some guidelines for that type of relationship? Thanks in advance for any help you may provide.

wouldn't that just be an off market sale?