All Forum Posts by: Jessie Tetreault

Are the vacancy, maintenance, property management, cap ex also being factored in with those expenses? Also that insurance seems very high too me. 4K a year? Is it a flood zone or something? If I was going to invest in a low income area I would want to see more than a 10.6% COC return. That's just me.

Yes 86 gallons of water seems extremely excessive. Is there no way to have them pay for water and have them split the bill themselves. I live in Goldsboro nc and military guys rent single families and split all the utilities amongst themselves. This isn't very uncommon. Leave them accountable for it.

I had this problem myself last year. I got a water bill for 18,000 gallons worth of water. It was the toilet. You would be amazed how much water a toilet can use running all month. I replaced the handle and the guts. Problem solved. Water bill was like $350.00. Toilet fix $30.00...

If it were me, I would sell this property and take the tax free gain. Then take the money and leverage a multifamily with it. I think you would see a greater return on your money. I did a quick rundown of numbers with your property. This is how I run numbers and these might be slightly high but I mean I feel it can be challenging to really budget for repairs and vacancy because it's not a fixed expense so I would rather be safe than sorry.

$1700.00 (Rent)

-$1038.00 (PITI)

-$170.00 (Vacancy) 10%

-$170.00 (Property management) 10%

-$170.00 (maintenance) 10%

-$85.00 (cap ex) 5%

-$20.00 (garbage)

$47.00 (cash flow)

I wouldn't say these numbers are set in stone at all and could definitely vary and maybe @Doug McLeod could give more feedback on these numbers. He definitely seems like he has more experience than me. I hope this helps.

VA loans will require you to have 2 years landlord experience/ rental income to count the rental income from property. but as @Jerry Padilla stated an FHA will count the income but I believe its only 75% of the rental income. it may not even be this high. I think 75% would be max. The lending will want to mitigate their risk by factoring other costs associated with the property.

It is very possible to buy R.E with no money down. but to have no money at all. I don't think is smart. I can tell you this because I did it. I used a VA loan and house hacked a duplex for a year. One tenant on one side of the duplex paying $650.00 per month and I had a roommate and I on the other side. he was paying $400.00 I included utilities. The difference was that I had a 15k savings to fall back on as an emer. account. I house hacked this place for a year banked my regular pay plus all my BAH and moved out which I plan on using to as a down payment on a quad. I then rented this entire place out after I raised the rent to $750/ side. Mortgage, taxes and insurance are at $800.00. So it absolutely is possible to buy a place with no money but its bigger than that. Too me its all what you want, I don't have a car payment or really any debt except the duplex because id rather have more houses making me money that's just me. So for people to say they can't save any money per month I'm calling ********. I hear that from guys I work with all the time but they drive crazy cars, blow money at the bar and simply do not want to change their lifestyle they are currently in. Education and the want to change a lifestyle is most important before anything else happens in my opinion.

These numbers don't seem right to me. It seems to tight. IF you got the property for $107,000 you said mortgage, taxes, insurance would be $1103.04. I don't think that you are factoring in any maintenance, vacancy, cap ex or property management expenses. Even if you plan on managing the property yourself you should still account for property management. Also something to consider with the insurance, while occupying the residence you will have a home owners insurance policy, when you move out and have it as a full time rental you will need to switch this into a landlord insurance policy which could end up costing you more money and with these numbers in just doesn't seem there is enough room even with the rents raised up to $850/ side. I hope this helps.

yes, the security deposits transfer also depending when you close on the property you should be receiving pro rated rents for that month. Example if rent is due on the 1st and you took ownership of the property on the 2nd then you would be owed that rent from the 2nd down plus the security deposits/ unit.

You can have 2 VA loans at once. The second VA loan, like the first needs to be owner occupied. It has to be a purchase price of over 144k I believe. The VA loans together cant be more than 417k. Its called a tier two va loan. I hope this helps in some way.

https://www.veteransunited.com/valoans/second-tier-entitlement/

No problem hope everything works out!