All Forum Posts by: Jordan Thibodeau

@Chris Vail WHO DARED TO WAKE ME FROM MY SLUMBER AND SUMMON ME TO THIS THREAD!?

Oh hi Chris! Thanks! :)

@Michael Noto Here's a link. It's good for a quick and dirty analysis, but as for an in depth analysis for the BP calculator is the best.

@Marci Stein  Hi Marci

Here's the numbers I ran using the Real Estate Calculator which is an android app.

I assumed you will be using a property manager. You should be able to clear +200 plus a month.

@Jay Hinrichs  I agree. If this is a class A property, there's nothing wrong with breaking even. In your case Marci, you're cash flow positive and if you decided to manage it yourself your cash flow would be much higher.

Purchase Details
--------------------
Purchase Price = 233,000
Closing Costs = 6,900
Renovations = 0
Lawyer = 0
Misc = 0
Down Payment ($) = 58,250
Down Payment (%) = 25
Interest Rate (%) = 4.20
Years = 30

Income (Monthly / Yearly)
------------------------------
Rent = 2,500 / 30,000
Misc = 0 / 0

Expenses (Monthly / Yearly)
------------------------------
Property Tax = 548.92 / 6,587
Association Fee = 0 / 0
Broker Fee = 0 / 0
Management Fee = 250 / 3,000
Insurance = 139.58 / 1,675
Water = 91.67 / 1,100
Sewage = 0 / 0
Electricity = 0 / 0
Gas = 0 / 0
Heating = 0 / 0
Repair Estimate = 250 / 3,000
Vacancy Estimate = 125 / 1,500
Office = 0 / 0
Travel = 0 / 0
Accountant = 0 / 0
Misc = 0 / 0

Results
----------
Cash Required = 65,150
Loan Required = 174,750

Monthly
----------
Income = 2,500
Expenses = 1,405.17
Financing = 854.56
Net Income = 240.28

Yearly
----------
Income = 30,000
Expenses = 16,862
Financing = 10,254.69
Net Income = 2,883.31

Capitalization = 5.48%
ROI / COCR = 4.43%

@Brandon Turner 

 +1

@Ben Leybovich Great post.

P.S - I believe this is what happened when the tenant pulled a knife on you.

@Dylan Burnett  Cool. Thanks for tip. It looks like SDRL cut it's dividend. I wonder if EXXI will follow suit, we should know by the earnings call on 2/4.

I was thinking about buying Exxon and some of the larger names with high dividend yield payouts. I typically buy individual stocks in my roth 401k for income. I would speculate if oil continues to decline, you will see some sort of industry consolidation through M&A.

Well said everyone.

According to California Civil Code 1942, a tenant can, without your permission, have a defect repaired without your consent and deduct the rent under the following circumstances:

1. The defect must be related to tenability. The problem has to be serious enough where the building is uninhabitable without repair. (IE: Broken Heater, Stopped up toilets, broken windows, and malfunctioning locks)
2. Before having the repair done the tenant must provide you with a notice and enough time for the landlord to respond in a reasonable amount of time.

Based upon that, a malfunctioning garbage disposal doesn't fit the criteria for a tenant initiated repair and rent deduction.

I would NOT accept the partial rent payment. I would ask for the full rent. Then I would return with a quote from your contractor. See if you can find an amicable way to pay for or split the costs. 

@Brandon Turner Thanks for the Webinar. It was great.

@J Scott Yesterday I was doing a refreshing on the importance of NPV. Unfortunately we fall into the trap of absolute values, but we don't incorporate the time value of money.

Thanks for the post sir!