All Forum Posts by: Jacoby Atako

I bought a town home in July for $170k. HOA is $84, insurance $30, taxes 90 (but will be going up to $120 in a few months). Rents for $1300 a month.

@Casey Powers

Yeah, it's sad, if you start with your belief then you'll just find ways to support your conclusion. I would've believed him a couple years ago. But a simple search on sold homes will show there are LOTS of people finding great opportunities.

@Chin Chico

To be honest I don't care enough to give you details. You're bent on things being fake and unachievable which works for me, there will be less competition if people have your outlook.

I legitimately don't know who you are referring to with "Warren."  There are several examples given if you scroll up.  The home I bought in July was through creative negotiation on an off market deal.  Casey gave examples and Eric Fernwood have a website with a ton of examples.   I personally love Bill Brandt's model.  At this point I think regardless of what you hear you will assume cashflow is not possible. 

 I think you mean you can't find cashflow.  Which would be a totally valid statement.  To imply no one can find cashflow is absurd.  I just today got off the phone with an investor who cashflows $1500 a month on a property that 90% of people would pass up on.  He is just more creative.

@Jill F.

This is the way lol

Originally posted by @Terry Lao:

@Jacoby Atako

I redid the PITI and gave her generous property tax at .50% of sales price. I'm at $766 PITI, but lets say that close enough for PITI.

That means to net $450 per month, you would need to leave out water, sewer, trash, home warranty, repairs/maintenance, and cap ex?

Here are my below calculations, to get $450 net per month. Are we missing some expenses?

Thats probably pretty close. Water & sewer the tenants pay, she said it was not including repairs, so I think you would have to add in $38-40 a month for the warranty (which I assume was paid for the year which is why it's not included in the monthly breakdown but definitely is a cost), and even to add $100 a month for cap ex. Which is probably closer to a $200-300 a month true cashflow which we be closer to a 6-9% COC. I think the point was that you can get cashflow in Vegas in the current market. 

I am pretty sure I saw her write they purchased that in January of this year (I could be confusing it with someone else). But I doubt shes lying and I am pretty sure the interest rate is probably what is making you struggle with the numbers. At a 2.8% interest rate I can see the numbers working (and that is the interest rate I got, she could be seeing better, and this is on a non-owner occupied, I am sure it couldve been better). Like you mentioned earlier that low of PITI is probably the exception, but arent we all in the game to find the rare opportunities, not the average ones, right? I sell insurance for a living, so I know you can get a $40 a month policy. So there's plenty of room to make those numbers work if they got a great interest rate.

Originally posted by @Terry Lao:

Rent amount is referenced in the earlier question. I ran the numbers and you can see my calculations as why do not think can net $450 per month.

Where are your calculations?

 I could be wrong, and it wouldn't be the first time, but I think your issues with the numbers you are having with @Casey Powers example is pretty easily explained with your interest rate. You assume a 4% interest rate and I know got a 2.8% interest rate on a SFH. Which takes the PI down from $745-750 to $640. Leaving about $110 a month to make up taxes and insurance. $60 a month for taxes and $50 a month for insurance is very possible on a $200k home, especially in a B- area.