All Forum Posts by: Joe Fornasiero

@Andrew Halbert the key is taking action. Since you know the area and the house inside and out that option makes the most sense. I'm trying to determine if renting out my primary would be my best option as I could purchase my next home with an FHA loan to keep my overall capital investment as low as possible. I'd like to purchase a multi family property but there aren't too many in my area

Andrew Halbert how do your numbers look from a cashflow standpoint? Did you purchase this home with the intent of converting it into a rental shortly after? I've been considering the same thing but I'm concerned that I would only cashflow around $100 a month after all expenses

I would recommend shopping around between brokers and direct lenders to make sure you get the best loan. Based on what you're looking to do it sounds like an FHA loan would be best if you plan to live in one of the units

@Joe Villeneuve Thank you for the response. I know you typically invest in the Redford area. Would your numbers change at all based on the location? I was also very conservative with my numbers as the property was just fully renovated, roof is 7 years old, HVAC and water heater are 2 years old. All appliances are brand new. If I take this into account and scale back my capex and maintenance slightly I would be closer to $400/mo. cashflow.

@Chris Seveney right now I'm accounting for 8% vacancies, 10% maintenance, and 10% capex to make sure I'm conservative. Taking that into account and the PITI I'm left with approximately $200/mo in cashflow and 10% COC return. Although I would not factor this into my decision the area does well with appreciation. Do you think this would be a worthwhile deal?

@Chris Seveney the roof on the property is 7 years old. The HVAC and water heater are 2 years old so there is quite a bit of useful life left

What is the minimum amount of cashflow investors in Michigan expect to get on a SFH when putting down 20%? I'm analyzing a deal that provides $200/mo cashflow for a 10% COC return. This is a nice A class neighborhood and very close to my primary residence so it will be much easier to manage

@Corey Melkonian that's what I'm thinking as well. I put in an offer on the property. I've made the offer without an agent as the property was FSBO. Is there anything I should look out for when not using an agent?

Mike E. I see you have 5% for vacancies that seems slightly low (I typically use 8%) Also, I noticed that you only have 5% for maintenance. Are you accounting for Capex anywhere? I didn't see anything in the calculation.

@Justin Runes where are the properties located that you are talking about?