All Forum Posts by: Joe Fornasiero

Hi Victoria,

Welcome to BP! I'd recommend listening to the podcasts as a start.

I'm looking for input/suggestions on the model I use to come up with an offer price

Sample:

List price $135,000

Monthly rent               $1,350

Desired cashflow:     -$200 (Concept derived from the book Profit First)
Vacancy @8%:         -$108
Maint. @10%:           -$135
Capex @10%: -$135
Prop Mgt@10%:      -$135
Insurance:                -$37
Taxes:                      -$190
--------------------------------------------------------
Total for P&I:            $ 410

Use website http://1728.org/calcloan.htm and solve for Amount

Inputs:
Years: 30
Rate: 4.25%
Payment: $410
----------------------------------------
Offer Amount: $83,343.52 (subtract any rehab/closing costs from this number if necessary)

The one item this model doesn't take into account is the neighborhood. The individual should be able to determine the desired cashflow after factoring the area, type/class of neighborhood, and potential opportunity for appreciation.

Is there anything I should change in order to increase my success?

No problem @Sam Ball let me know how it goes. Hopefully it comes in quite a bit lower than Family.

Ordered the ultimate package Monday night! I'm having some issues opening the audio book though. Brandon Turner is there a way to resend the link for the audio book? I may have done something wrong but I can't access it.

Nice job! Do you have a video of how it looked pre rehab?

Sam Ball I would recommend reaching out to American Appliance Heating & Cooling 734-432-0572. The owners name is Rick. They do great work and prices are good

Jd Martin I've been investing in the stock market using vanguard etf's for years. That's very unrealistic to expect a 100% return on your money in a short period of time. I agree that vanguard etf's/mutual funds may be a good option but an investor can expect an average return of 8% per year (long term) which is much more realistic. Let me know your thoughts

I'd recommend reading Elizabeth Colegrove's book "The Everything Lease Addendum" there's a lot of great tips/wording on what you should add to your lease agreements.

@Andrew Halbert what city is your rental in? 

@Dave G. I've lived in Brighton for 24 years. $1000 is much more accurate for a decent place. You won't find anything in Brighton for $500-700. Feel free to message me if you have any questions about the area