All Forum Posts by: Jeremy Clark

@Sean Sloop.

Thank you for the clarification. That makes more sense. I think I misread it some where else on how I was to calculate it. Is 7-8% still ok? I’m in this for more long term but also don’t want to break even or lose money every month.

@Frank Jiang

I knew I was missing something on the COC return. That's makes more sense.

What do you mean by add the 5k principal back in?

@Cassi Justiz

Thank you for your reply.

So I’checked on hotpads in the same area to get the rental comps. They are between 1800 and 2k for similar property types.

Yes on all utilities and was planning on tenants being responsible for snow removal. Didn’t factor lawn maintenance.

I’ve been analyzing deals and everything in my area seems to have such a low profit per door once I factor all the expenses and the mortgage and I feel like I could potentially be more conservative but dont want to talk myself out of every deal and never do one. I know the best way to get better deals is off market but just starting out I’m Leary of a few things to go that route so like the idea of a realtor and mls initially. I plan to self manage the properties initially until I get enough and it makes more sense to hire it out. I have all the ability to fix things on my own so not too concerned about that side of things.

I think I may have found a potential deal and would appreciate any and all feedback. Here are the numbers.

Duplex 3/2 and 3/1

Asking $349,900

20% down $69,980

Gross Rents 3600 2@$1800

P/I at 4.5% $1418

Taxes $385

Insurance $150

CapEx 10% $360

Management 10% $360

Vacancy 7% $252

R/M 7% $252

Total expenses $3177

Net profit $432

43200- 17500 mortgage= 25700/69980 = 36% COC return

What am I missing? I feel I’m being conservative cause I don’t want to lose but am I really?

Looking to purchase my first MFR. I have been researching for long enough and I am ready to purchase my first one finally. When doing my calculations to make sure the property is cash flowing I am curious what others are using for vacancy rates, cap ex, repairs/maintenance and property management percentages of gross rent in the South Shore Massachusetts area? Prices are high on most properties in the area and by the time I figure all these costs in with the mortgage and the percentages I've been using, there isn't much cash flow left over. Also what are investors in this area looking to cash flow per door? I believe any market can work it's just finding the right property but I would like to make sure Im using the right calculations. I haven't had much luck finding vacancy rates in the area and know that cap ex is dependent on condition of property but looking for ball park figures in my specific area. Thanks in advance BP.

@Natalie Comoletti @Charlie MacPherson    I look forward to you both being there and anyone else. Roads are clear so shouldn’t be any issues. 

@Charlie MacPherson Sounds good. I’ll at least see you at 6:30 at Tavern on the Wharf. 

@Charlie MacPherson I can’t do this Sunday as it’s my wife’s birthday, I don’t think that would go over well.  I can do any other day after 6 except tonight. 

@Charlie MacPherson  Sounds good to me, I like beer, calamari and Real estate.  What days and times tend to work for you best? 

@Brie Schmidt Thank you for the link. I will keep an eye out for those meet ups. Looks like I just missed a couple this week so I will be sure to look at that from now on.