All Forum Posts by: David W.

@David W.

High expenses on that property! Are there any landlord paid utilities, like sewer/water/garbage? 

Be careful with a property like this. A return that low on a smaller property doesn't give you enough cash flow to buffer even the smallest of surprises. At a 7% return I'd go throw my money in a vanguard index fund- same return, less passive.

@David Waddleton

Does anyone see why he shouldn’t partner up, find a better bank rate and maybe put down say 30% split. If this is a long term investment this will be the first of many properties you will buy. You’ll get 50% equity and if your close you can split the PM responsibilities with a partner. Get your hands dirty get experience you can’t buy.

Or what someone just offered me which was 42.5% equity across the board for 50% of the down payment. You could manage and your fee is 7.5% on the deal. You have 57.5% equity. Less out of your pocket and money for the next deal. Still get a better loan. Build your empire slow and with a strong foundation.

@David Waddleton Don’t ever let competition derail your budget. Stick to your numbers. You will be tight on money with this deal. Water heat goes out and there goes your $1500.

Don't just buy property to call yourself a landlord. My mutual funds and ETFs are returning 9% YTD this year, okay not for the last year but I wouldn't buy a headache for mere 8% COC. I don't have a single property that has return that low. All of mine are in excess of 25% return.

I need at least $300 per door per month at minimum before I even make an offer.

@David Waddleton

You’re eager to invest and it shows. I like your drive.

My question is “have you requested the current tennant’s lease?”

“Is the current tenant under a lease?”

If so, you will have to honor that lease until it expires. I have been reading the thread and haven’t seen these questions yet.

Also, be wary of increasing rents without adding value to your tenants otherwise you may end up with 100% vacancy and a less than reputable image as a landlord.

@David Waddleton Columbus oh?

@David W.

Not sure if anyone has addressed this, but seems that you have only 5% for each of the CapEx, maintenance, and vacancy.

If the property can rent relatively fast, and is in OK condition, I think you can survive with the 5% reserves for each.  Now CapEX at 5% could be a problem, be careful estimating the condition of the roof, HVAC, waterheater, plumbing, etc.  

@David Waddleton $200/month of cash flow is honestly not a bad return for first time investor. If you’re financially comfortable with it then go for it. You’ll learn a lot down the road. You’ll still benefit from tax/business deductions/depreciation/building equity every year and if you’re planning on holding it for the long run then it may be worth it. Also if it’s in a decent area (not a war zone), good tenants, etc.. then go for it.