All Forum Posts by: Jacob Sampson

I would guess that you will find some pretty significant negatives as you start digging.  On the face of it those numbers are too good to be true...you know what they say about that.

From a strictly #'s perspective it looks like a god deal.  It doesn't suprise me that others say it is a bad area.  That sort of cash flow looks like bad area cash flow. 

I would sell because there isn't any positive cash flow on that property.

If this is a buy and hold play, there is no cash flow there.  Purchase price is too high vs the rent.  I don't personally care about equity plays.  It may be there it may not, you won't know until you sell.  And you will likely give up 8-10% of the equity to transaction costs.

That sounds solid.  Well done!

@Luis Melendez

Congrats on that deal!  It sounds great.

Did you do a 30 year note?

How do you calculate long term cash flow?  You mentioned $1000 a month, what % do you use for vacancy and maintenance?

@Tim Ryan

I definitely agree with what you are saying, regarding good and bad debt.  The problem is those aren't static, you don't take on good debt and then have any guarantee that it stays good debt.  Good debt is good because it push a reasonable amount of extra cash into your pocket.  If, through markets, or a spike in vacancies or maintenance or interest rates, or local economy, your debt stops doing that then it is bad debt.

Thoughts?

How did you decide what to offer without knowing what the income would be?

@Taylor Chiu

I still own it.  It's not all that exciting, though.  I would categorize it as a solid C+/B-.  It's purpose was to get me started and that it did.

Super old post but I wanted to add my $.02.  Coming from someone who dislikes every business that has built up around real estate, be that banks, real estate agents, or appraisers, I have found the only good realtor, IMO, in my area.  I do all my purchases through her.  She brings me tenants, will look at 10 properties to narrow down which ones I should actually look at myself, she has connected me to great maintenance people, and is great at providing realistic assessments of rehab costs. 

I doubt that type of realtor is going anywhere.