All Forum Posts by: Jack Cottrell
Jack Cottrell has started 2 posts and replied 16 times.
Post: Help me adjust my expectations - first deal pending
- Posts 16
- Votes 8
Post: Help me adjust my expectations - first deal pending
- Posts 16
- Votes 8
Quote from @Greg Scott:
Jack:
I wouldn't argue against you doing your first deal. There is nothing you said that I find particularly scary. You would learn a lot from doing this deal. Still, it is not a great deal. It is not a great deal mostly, because of what you did not say.
I was hoping to hear you add something like this... "I'm going to put $30K into rehabbing it and it will be worth $200K when I'm done and rent for $300/mo more than it does now."
This is the piece savvy investors know how to do to unlock outsized profits..
Thanks Greg. I appreciate the feedback. I'm not opposed to finding deals like what you talked about. I should have mentioned that I am out of state in Colorado and I'm not connected yet to contractors that I trust to do a rehab. I was hoping to do a deal and get my feet wet with something relatively simple to start. So I gather this isn't a deal that most of you with experience would do?
Post: Help me adjust my expectations - first deal pending
- Posts 16
- Votes 8
I'm a complete noob. I'm planning to put in my first offer on my first rental on a SFH in Kansas City in the next day or two.
$140k offer
8% interest rate
20% down
8% management fee
5% vacancy
5% maintenance
5% cap ex
I haven't gotten insurance costs yet but it's been suggested that I plan for $2k per year.
Once I plug in all those numbers, I'm pretty close to breaking even. I have the ability to put 25% down or more to increase cash flow. I just want some outside eyes to help me understand if this deal is what I should expect to find as I build my portfolio.
I plan to buy and hold long term. I am expecting to do 3-4 deals per year until I get to 20 properties or so and then snowball the debt so they are all paid off by retirement.
Am I ok with this plan to ride up the appreciation, mortgage pay down and rising rents? Or is this type of deal that you savvy investors out there would scrap and try to be more aggressive? Any thoughts are appreciated!
Post: Portfolio of 9 properties (16 units) for sale in Pueblo, Colorado
- Posts 16
- Votes 8
Are you still trying to offload these or some of these properties? If so, please message me at Jack at jacktheroofer.com. Thanks!
Thank you! I own a roofing company in Denver and a separate gutter company there too.
I'm a business owner in Denver metro and looking to start investing in markets outside of Colorado.