All Forum Posts by: Greg Moritz

I don't have any answers for you, but thanks for taking the time to ask this question.  I'm following along as I'm currently in DD for a property where I would love to sub-meter the water.  

Hi Kwang,

I'm quite new here, but there are a few things that worry me about this deal.  The forced appreciation is great, obviously if you can turn 15k into 45k that's pretty nice.  As a rental though the performance seems poor.  A $200k house renting for $1700 isn't even 1% of the purchase price.  I don't think this will cash flow well. Would you buy a $200k house to rent out at $1700? There's probably better opportunities out there.  

Yep, definitely. Thanks for the advice David.   Let me share a quick BP analysis:  

https://www.biggerpockets.com/buy_and_hold_results...

I'm being pretty conservative with the costs here (assuming higher maintenance and higher vacancy, even though the current tenants are very stable) and ending up a bit over $200/mo in cash flow.  Using 50% rule it's closer to $300.  

Hello BiggerPockets!

After reading a few books and lurking way too much on this site.  I decided recently to take the plunge. Now I'm under contract on my first investment home! Strategy for this is a long (5-10 year) term buy and hold with cash flow. Would love to get some thoughts and feedback on it before I actually pull the trigger.

Location: Atlanta, GA (where I'm based). Class C area.

Type: Duplex, each side a 2/1.

Occupancy: Both units occupied, each with long term tenants. One that's been there 40(!!) years.

Purchase price: 74k (cash), will cash out refi when possible.

Rent: 600 each side, 1200 combined. I think this can go a bit higher, but want to be careful with long term stable tenants.

Utilities: Landlord pays water. Currently about $150/mo. Would like to submeter this, but will have to feel that out with tenants.

Built: 1940

Condition: No major issues noticed on the walkthru. Waiting on inspection (will happen Wednesday). It's dated inside, but not bad.

Taxes: $729/yr

If there's any other info needed please ask! When I run the numbers on this it looks pretty good, but I'm definitely a novice here.  

I'm very new to this so take my analysis with a grain of salt.. but these numbers look great to me.  I wonder if your capex and vacancy rates are a bit low, but even if they are it looks like there's enough room to still cashflow nicely.  

@James C. If you don't mind, could you step through your calculation a bit more? What is ROT? Why are you multiplying (ARV-1.5xHighEstimate) * .7?

Jered, thank you for running the meetup last night!  It was an inspiring and educational evening!

Looking forward to meeting other local BP folks!  I'll be there!