All Forum Posts by: John Southard

Shane Johnson thanks I figured it was too thin but wanted some confirmation.
Scott W. I did include 3K for closing costs as part of the downpayment and a 8.3% vacancy in my expenses. The average comps is 1100 and the rental market here is hot.

Thanks for the feedback

I need some help deciding on a potential SFR 3/2 rental property. I've run the comps on both rental and purchase and would like some feedback from you all if this deal is worth doing:

House Price 105,000
Down payment 25,000
Mortgage 84,000

Debt payment (407)

Rent Comps 1,100

Vacancy at 8.3% (91)
Taxes (263)
Insurance (58)
Repairs (138)

total Expenses (550)

Net Operating income 550
Less Debt (407)
Monthly Cash Flow 143
Annual Cash flow 1,716
cash on cash 6.86%

I'm looking for long term hold for cash flow and appreciation.
The Repair estimate is a swag to make total expenses come in at 50% rent
Debt payment based on actual qualified loan
House needs no additional capital to begin renting

I'm looking at a potential first rental property and the house needs a lot of work. It currently has a tenant paying below market rent. At first walk through the house needs a new roof, not leaking but it's apparent it will need to be replaced within 5 years. There are other items needing immediate attention. If the tenant remains with the property how much renovation do you perform if the tenant is living with it prior to the purchase? For example, the Sheetrock behind the shower needs replacing. The owner claims the leaky shower is fixed but there is still the moldy ugly sheetrock remaining. So if I purchase this place and tenant doesn't request the sheetrock to be replaced do I just leave it until the tenant vacates? The owner claims the tenant wants to stay, paying below market rent. If purchased I will probably raise the rate to be more competitive. If I can get the property for 2% of rents I will probably pull the trigger but am not sure how much I should plan to put into the property immediately. My first inclination is to fix the shower regardless of whether the tenant requests. I do plan to have the property inspected professionally prior to purchasing.

Thanks guys. I appreciate the input

What do you all consider to be "Standard" Appliances in a rental SFR?
Some of the properties I have been looking at don't have any appliances in them at all. I am thinking Diswasher and Refrigerator are standard appliances in a rental.

I took Jeremy Gonzales advice and checked again and there were several 210 phone numbers. Thanks Guys!

I think it would depend on how hard your water is. The water here in San Antonio is pretty hard. If it were me I would keep it and maintain it myself. A WS will help to extend the life of water heaters and dishwashers.

Thanks Jeremy Gonzales I do check from time to time and will continue doing so.
Prashant P. that's a great idea, thanks.

Deborah B., thanks for the reply I looked at Ring Central but the one phone line is $30.

Hi everyone, I am starting out and looking into purchasing some rental properties. I have a full time W2 job that I love but I realize I need to invest for retirement and rentals would provide passive income and appreciation that I'm looking for. I won't be answering calls during work hours and need a dedicated phone number for prospective sellers and tenants to call and leave messages. Google Voice doesn't have phone numbers in my area code so that's not an option. I've looked at both Evoice and Grasshopper and was wondering if anyone can recommend either of these or another product that won't cost a bundle.