All Forum Posts by: James L.

@Robert Omoto

 Thanks, that seems right. What kind of cash on cash should I be looking for ideally?

So it looks like grms in the area are about 9.5, but when im calculating this propert do I do sales price only? or do I use sales plus rehab? If I do sale price GRM it comes out at about 7%. Im using a duplex less than a block a way with the same floor plan and renting about market 1000 x 2 a month its nicer and selling for 225k is 9.35%

 Hey Bob, what kind of cap rates should I be shooting for?

 Can I ask why you feel that way? What makes it a terrible deal? I would be buying it 45k below comps and when I m done be nicer and rent higher most likely? I welcome feed back if I dont learn what makes this a bad deal than how can I grow and avoid the same mistakes in the future.

 Im trying to learn and understand, why? doesnt it still meet the 1% rule? and once both are online it would do better than.

so the really rough unit is month to month at 750, it will need about 20k in rehab to get it to a market rent of 1050 which by my math is 18% coc, the other unit is at 750 a month until December and in pretty good shape might need 10k in paint and floorings if I redo the ugly tile, probably could do it for a lot less. I'm trying to be conservative.so if I do my math right that's 36% coc. Does that jive?

First brother find a real cpa, interview them make sure they understand investments. You said you have 150k in it? Do you really? Is that what you paid in or is that including all payments that the tenants paid? Also a good cpa would have depreciated this property the day you moved out so just back of the napkin should have been maybe 10k a year. Then you can right off interest portion of your payments and your property taxes. And I believe that because you cash flowed negative you can right some of. That off.

I am no accountant, but that sounds like maybe 20-30k a year in right off.  The other thing is you bought a non investment house and tried to turn it so you live and learn. My view on things is it only cost me what I put in. Not what my tenants pay. The only cash that I pay is my down payment, and my personal residence. So I have a 300k house that cost me 10k 10 years ago plus some rehab so that means I bought a house now worth 300k for maybe 15k. That is a good return. But as far what to do, I would sit down with a real accountant and talk to them, my bet is you may only be 100k in it and you might be able to right off the lose on this years taxes. My .02 I'm not as experienced as others but take for what it is.

And as far as rents go, I've checked in all directions using rentimeter, Craigslist, and zillow it looks like between 1050- 1200.

There is a house on the same street same floor plan and size renting for 1050 and one for rent 3 blocks away for 1200.

There is one for rent at 875 but it is a 2/1 smaller sqft, and in rough shape

@ Samuel demass

I'm sorry, it's 25% down = 45k

At what point do I walk away from it?

Hey everyone, so I have a duplex in round rock. I'm kinda nervous, I ran the numbers it seems ok but some feed back would be appreciated.

So have it under contract for 180k, 20% down finanacing 135k @ 4.3% for 30yrs. It's currently renting for 750 a side they're 3/2 with a one car garage. Market rents are 1050 eq. if I did the math right after dumping an additional 30k in rehab I should be cash flowing about $460 a month. Thanks