All Forum Posts by: Josh Sohar

That seems to be a lot of money up front to only net $805/month.

Are all units occupied? What’s the breakdown for insurance, money held back for repairs etc? Is that all worked into the final cash flow number?

@jessecontreras Lots of opportunity in Indy area, although lots of competition also. PM me and we can discuss! Welcome to Indy!

This looks like a total gut job as well as bringing things up to code. Probably a total electrical redo. Would probably be more worth it to bulldoze and well the land or build new.

What would be your net income? Numbers look like they may be slim....

Yeah I think this is a bad idea if you don’t have some cash to go into it with. Not having $600 for the first month knowing that there are renovations needed (some major as you said). Also, what about your reserves for tenant issues (water heater blows up, A/c quits working, etc)? Unless you bring in a partner this is dangerous :/

Get ahold of me I can help you out

Hey Phil, I can help you out Josh

What condition is the property in currently? Have you seen the entire property yourself? Pictures? I agree with @AdamMeier Being as old of a house as it is, I would say $50k is on the low end (really low) of the costs you would incur to rehab.  Personally, anything under $200 a month cash flow just isn't worth it to me.  

Fees are probably the biggest concern, between broker fees, local RE board fees (for MLS access) and others, you could potentially be paying $5-10k per year. Yes on the disclosures to buyers and sellers, but often that doesn't pose many issues. Also keeping up to date on your license requires continuing education. Classes that you have take to keep up with the local requirements for RE agent CE. You will have to pay for those classes and obviously attending takes time out of your schedule. A lot of it depends on what you want to do in REI on whether you feel you need to have your RE license. For some it makes sense to have it to save on fees but then again that means you take on all the negotiating and paperwork that goes along with being an agent. Also yes most brokerages require you to hold earnest money in their escrow accounts (but again that can be dependent on your local state) Josh Sohar