All Forum Posts by: John Olsen

Do my numbers look legit?  I feel like I could have been very conservative.  Also, I could take out property management since I would be managing it long term. I just included it just in case something happened where I wouldn't be able to manage. However, I don't see that happening. 

Total money down is $6,245 

$106*12 = $1,272

$1,272/$6,245 = 20.36% COC Return

I'm looking at a duplex property today.  Each unit has 1 bedroom and 1 bathroom.  Unit 1 get's $825 in rent (1st floor), and has all new floors and appliances.  Unit 2 (upstairs) also is 1 bedroom 1 bathroom & receives $650 rent, but could use new flooring and appliances, however, the tenant has been living upstairs for 13 years (section 8 tenant) so I don't plan on bothering them too much.  The total rent of the 2 properties is $1,475.  Here's a breakdown:

Rent: $1,475

PITI: $890

Water: tenant pays

Trash: tenant pays

Snow: tenant pays

electric: tenant pays

Gas: $80

Property management: $148/mo. (10%)

Vacancy: $74 (5%)

Repairs: $74 (5%)

CapEx: $103 (7% of GI)

 Monthly Cash Flow: $106

My question is: The home was built in 1896, however, it's in growing city and in a great location.  I know the numbers are tough to calculate for somebody in a different area, but I wanted to see what questions people had and concerns with the older property etc.  

I just got pre-approved for a home loan. I’ve met with my agent but we didn’t get in too much detail on the home search discussion. I’ve told him what I’m looking for (duplex - house hack), location, Price, but didn’t get into any more detail. What are some questions or discussions you recommend we talk about before going to far into the search for my first deal. I don’t want to get in too deep too soon. I’m meeting with the agent to talk in a couple days.

@Cameron Rees I just started educating myself about REI about 6 months ago. Looking for my first house hack duplex!

I'm from this area too brotha. Couldn't really answer your question though. Welcome. 

@Tim Swierczek I appreciate the input. I will definitely take your advice in my search! Thanks Tim

@Ryan Luthi thanks for the advice. I will put this in to use while searching for my first property! Just got approved for FHA loan today!

@Jordan Moorhead that’s the goal after a couple years until I can house hack an even nicer place! Thanks Jordan!

@Jordan Moorhead what should I be looking for as far as numbers go? Should rent cover PITI and expenses? Just PITI? I know there are a lot of factors but just wondering haha. Thank you for your input I think so too.