All Forum Posts by: Josh Sanders
Josh Sanders has started 2 posts and replied 3 times.
Post: Are there similar countries to the US for RE investing?
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By similar I mean that they have the possibility of getting multiple mortgages, abundance of multifamilies, green light for house hacking, lower than 6% mortgage interest, and conventional loan rates around 8% for the down payment, lower if possible. Getting a green card is hard, especially now. My idea would be to relocate somewhere else with a similar permissive market for those who want to invest with little money down (Im a software dev from Argentina with polish citizenship). I dont mind if it doesnt cashflow much (which is common in Western Europe) since I would buy & hold for a decade and then pull out equity or sell if its 100% paid off.
Thanks in advance.
Originally posted by @Ibn Abney:
@Josh Sanders Few things:
4% INT looks way to low. Especially on the a 30yr commercial note. I believe its closer to 6.5%-7.5%
4% on a conventional loan ?? Do you mean personal loan/line of credit? 4% still looks low. I would guess 8-12% unless private lender
water looks low. I pay about $850-$950 for a 2bdroom townhome. Non-metered though!!
Insurance looks low too. I have a 3 unit which is $3400/yr. Different area, but $4K looks low for this area.
Where is your PM fees? Are you going to self manage? do all the leasing?
I do see landscaping/snow removal?
Also, you are assuming 100% occupancy. If one unit has an eviction issue, that 4-6 months no cash flow. 1/7 is 14% roughly, of monthly gross rent.
Best of LUck!
Thank you! A few questions: is that 4-6 months of eviction considered slow in comparison to other states like florida or missouri? Also, is there a way for me to check if the insurance-water numbers shown in loopnet are true?
Hi all,
Im trying to see how much cash flow I would have if I'd finance 100% of the property. In other words, the 20% required for the down payment of the property comes from a conventional loan. Thing is, I've never done this before so I dont know if these are correct calculations. Im basing all of this from the loopnet numbers (link)
$700k, 7 unit, Chicago IL.
30 year 560k mortgage, 4% int.
10 year 140k conventional loan, 4% int.
Real Estate Taxes: 6571
Insurance: 4007
Gas: 863
Water/Sewer: 3287
Electric: 846
Scavenger: 1855
Janitor: 630
Maintenance & Repairs: 3224
6% Vacancy Loss: 5673
Yearly/Monthly Rent Income: 94560/7880
Yearly/Monthly Expenses: 26956/2246
Yearly/Monthly NOI: 67604/5633
Monthly Payments
Mortgage (only P&I since RE tax & insurance are already covered at the top)(*): 2674
Conventional Loan: 1417
Monthly Cash Flow = NOI - (Mortgage + Conventional Loan) = 1542.
Im not sure if my numbers are accurate... Am I missing something? Im probably miscalculating where I placed the (*). There are two real estate taxes: the one that appears in loopnet and the one that its on the zillow mortgage calculator. If I take into account the two it leaves 1008 cash flow... What do you think?