All Forum Posts by: Joshua Haynes

I believe that is totally fine.

I didn't know that. I still don't think its the best deal out there, but it sounds a lot better just because taxes are included. Try to negotiate super low at first to get a more desirable price. But in this case, I wouldn't buy it just for the fact that I can't get a VA loan. The ROI still seems really low for a traditional loan. But you have a VA loan which helps out with that. I would look to try to get another opinion because mine isn't the best for sure. But try to bid low to get the pricing you truly want. This also will increase your cash flow because your mortgage will go down a lot. Thanks for following up!

- Josh

Contractors always underprice the fixup :)

To be honest, I believe this to be a bad deal. First, the spreadsheet doesn't include necessary things such as property tax and insurance on the property. This already causes your cash flow to go into the negatives. Property tax is a lot each year. Also, the property doesn't follow the 2% rule. when you buy a house to rent, you look at how the house prices. So you divide the rent by the price of the house. Typically, 2% is good. In this case, the property has .77%. Having 2% helps keep stability in what you buy. Anyways I hope you find a good property soon. Thank you for your service

- Josh

I think that the US census provides some great data on population increases as well as rent and housing prices. Neighborhoodscout.com is great for looking at crime rate stats as well as schools

census.gov

Neighborhoodscout.com

Read the Article. 10.5% Vacancy Rates sound way up there. Do you think these rates will go down soon? I was also wondering about the crime rates. They seem really high for the area. What do you think of surrounding cities and the outer part of town?  Anyways thanks for your comment back. Anything helps! 

- Josh

I agree with Hai.

I don't think it would be necessary to add a gym in the basement unless it increases rent. It seems like a bit of money to add in to not receive back. keep in mind that in you add in a gym, you also add on a liability of being sued or tenents being injured. Although it sounds like a great idea, I find that it wouldn't increase you and your interests and might even create problems.

@DJ M.

Wait, Detriot? Just wondering what your ideology is behind that. 

The numbers for your monthly payments are way out of order. Make sure to consider vacancy, repairs, insurance, property management and most importantly, Property tax (beside mortgage) 

Just remember that there are other factors such as Crime rate, Population increase, real estate appreciation, rehab costs, mortgage pricing and others that contribute a lot more to the success of your property than just Cash on Cash return