All Forum Posts by: Jordan Wolfe

Yes you are right. I royally screwed this up I used numbers from two different properties... I will get the correct ones here... Best not to work late.

Hello all, first off thank you for taking the time to read this post...

I believe I have found my first viable rental property and I was hoping that some of the more seasoned rental gurus would be able to take a look at the numbers and let me know if everything looks in order. To me everything looks like it will provide a good return on my rental property. This is a condo unit. Please see the numbers below...

Property is a 2 bedroom, 2 full bathroom condo unit. The unit includes a balcony and an in unit washer / dryer.

Assumed Value After Capitol Improvements: $125,000

Percent Down: 25% (Currently What My Lender Is Requesting) $31,250

Interest Rate: 3.5%

Rental Term: 30 Years

Buying Costs: 1%

Rental Rate: $1,500 ($750 Per Renter) - Includes Garage Parking, Washer / Dryer In Unit

Cap Rate: 14.40%

Vacancy: 8% Annually

Rent Increases: 2% Annually

Property Management: 6% (I plan to do most of the property management)

Maintenance: 1%

Move In / Move Out Costs: $2,000 (This is per vacancy change)

Mortgage Payment: $979 / Month

HOA: $317 (Includes - CAM, Lawn Care, Master Insurance Policy {does this mean I don't need additional insurance?}, Snow Removal)

After All Expenses for the first year I expect to pull in an average of $1,380 / Month Gross and about $401 / Month Net (after mortgage payment). Does this sound reasonable?

What about the fact that utilities are not included? 

I have a similar property for about the same price (Includes Two Parking Spots) but the HOA fee is $702 / Month (CAM, Exterior Building Maintenance, Heat, Lawn Care, Management, Master Insurance Policy, Reserve Funds, Sewer, Snow Removal, Trash Removal, Water) - Is this HOA fee too expensive even though it includes all those amenities?

*Land Value Is Included In Property

Please let me know what you all think and if I missed any details let me know and I can surely add them.

Thanks!

Jordan.

@Christina R. I will be there next Wednesday, I am very excited to network and get to know everyone. Is there anything I should prepare before coming? Thanks for the warm welcome and inviting me to the local REI!

Everyone thank you for the extremely friendly and warm welcome here on BP it was definitely scary looking into real estate by yourself and I am extremely happy I found this community. I am excited to get started and review the basics and all of your awesome suggestions. In the next few weeks and months I will be pouring over tons of information and I hope to be able to meet some of my local counterparts in the near future at an REIA meeting! Again thank you all so much for making me feel so welcome. :)

Hi Natasha nice to meet you as well! How long have you been involved in the Maryland real estate scene? Thanks for the warm welcome.

My name is Jordan W. I am new to the real estate investing market but I have a passion for housing, architecture and interior design. I have 10 years of experience in engineering, hold an A.A. in interior design, currently studying architecture and are quite handy and familiar with all types of tools. I look forward to meeting people in the local area and abroad to help build a better future.