All Forum Posts by: Jake Henrion

Nothing down here in sandwich.

Plymouth would be a great spot to look for a deal when they finally start selling

Hello

You need to run some numbers first before you make a decision to determine if renting out your property will produce positive cash flow.

If it produces negative cash flow it probably isn't worth your time even if the property appreciates and you still have your equity built

If you were to rent for 1500 a month you should calculate all other expenses involved in the property and subtract from 1500 to determine cash flow. Expenses include: mortgage, insurance, taxes, capital expenditures.

Total income-expenses= cash flow.

Then you can figure out your annual cash flow and divide by your total invested capital to find out your cash on cash return. 

Total annual cash flow÷total invested capital

Generally people look to see around 2% but it's up to you what you think is a good return on your investment

Typical expenses

vacancy 5-15%

Repairs 5-15%

Cap ex 5-15% (also based on life expectancy of current items)

Mortgage, insurance, taxes

Then you can decide what your tenant pays from there (utilities, lawn care, snow removal etc.)

 800 sq. Ft ranch full house FLIP..

First floor is completely finished and we have moved on to the basement

Finished basement has a drop ceiling with no possible way to drywall and plaster because of the HVAC ductwork. Only option would be to move the entire system to the attic which would cost thousands...

I'm looking for creative ideas that will take the buyers eyes away from looking straight up at drop ceiling tiles as soon as they walk in to the basement.  My eyes wouldn't leave the drop ceiling when I bought the house because there wasn't any wow factor to really focus on. I havent used any sub contractors on this FLIP as i am a plumber and generally handy in all other trades. Labor isn't an issue

I was thinking of bead board surrounding the basement throughout. House is on Cape Cod, MA and bead board is a popular product around here.

Other than that I haven't thought much about what I can add for a nice budget friendly feature and I'm looking for any ideas.

Thanks for any suggestions

Hi William, Thank you for your advice!

The problem im having with the MFH search is that 1) they are limited in my area (needs to be in my area to house hack because i take a company truck home and need to stay somewhat local) 2) the ones that are available are affordable but are in the highest crime areas in the county. The properties are close to total tear downs as well.  I do search everyday for new listings and hopefully i can come across a MFH that isnt in a neighborhood that s filled with crime. I should have re phrased what i had previously said about not being able to afford it. im nearing 20k in the bank so a 3.5% down payment on a 250k wouldnt be an issue. its the location that really wouldnt be worth it. (murders, heroin problem, ect.)

the great part about the USDA first home buyers program is that they base your mortgage off of your income, so i would be able to save money, have a place to live (i dont want to rent) and fix it up in the years im living there and hopefully turn it in to something profitable. Ill have to do my research to see if it would actually work that way!!

Thanks for the advice Sam!

To be honest I havent done much if any research on how much these beach properties are renting for in my area. Its the time limit I have to find a place that is putting me in to a mild panic. So the ideas are kind of flowing in any direction whether they make sense or not, but at least i can take in advice and eliminate some of these ideas and move on to better strategies. I would love to come across a cash flow property because i can fix it up myself and save huge money especially with plumbers labor rate of at least $100/hr around here. I guess i need to give it more time to find that deal, even if it comes up wihin a month of me getting the boot!

Thanks! Glad to be hear.

Since it is Americas hometown it is a HUGE area for tourists. It is busy here year round which is great for local business' and property owners. Definitely looking to buy within 10 minutes from the beach so I could potentially use it as a vacation rental in the future. especially since Plymouth is only improving every year.

Thanks for your input!

Hello everyone,

I have been reading on this site for about a month now and soaking in the information.

Little background to start: Im 22 years old, licensed plumber working full time as well as running my own plumbing cash business on the side. I decided I wanted more out of my future than one source of income running my own business so I came across REI. Currently still saving money living with the parents but got the 1-2 year warning as in (time to get lost and find my own place)

I have been going back and forth on my decision to buy a multifamily or SFH as my first property. Seems like multifamily is the way to go BUT, I have decided to do a USDA loan for a SFH and was hoping for some advice to steer me in the right direction or to tell me Im doing it all wrong.

My plan is to buy a small SFH in a neighborhood that I could walk to the beach for around 180-250k. In my area (Plymouth, Ma) there are tons of properties in such areas. I personally dont care about the beach but as a future investment when I move out I would like to keep the property as a rental because of its location. With my income I could still save money while living in this home for a few years and I understand that the rental wouldnt work if the mortgage was too high so id have to look for a killer deal. After I save up enough money my plan is to FHA in to a duplex and house hack.

I dont know if im planning this backwards or what but as of right now there are very limited MFH's to purchase even close to my area for what i can afford and the USDA has no wait list as of right now.

The pressure is on!

Any advice would be appreciated!

im a service plumber and 700 is reasonable. cant return electronic parts to the supply house so the markup significantly exceeds 30% on the control board. he was just covering himself from a loss if the furnace needed more parts after the control board and you fired him. then he would be stuck with a $350 control board.

I am a plumber in mass, and sounds like individual on demands would be great in your situation. Highly efficient and have a great clean look to the units. It would be a great feature if you were to ever sell. They do get a little pricey depending on which unit you were to install, and the bad part is that they do not last 6-10 years without ever needing service. i have yet to come across an on demand boiler unit that hasnt needed service within 2 years and the parts take a while to come in.

good luck