All Forum Posts by: Jordan Greer

@Will Barnard - That was very helpful! Thanks for taking the time to help out a novice. I have plans to add 2 units per year over the next 5 years and then to bump up to 4 units per year in the 5 years after that (paying for part of the new properties from the cash flow I am bringing in on my existing properties). Cash flow is extremely important for me to execute my growth plans after the 5 year mark.

@Michael B. - Thanks for the feedback! I am looking for a long term investment. What are your strategies for inching up the rents? That is something I plan to do going forward. Do you increase based on some formula or is there a standard amount you'll increase by each year?

@Perry L. - Thanks for the feedback! The $220K is more than $20k less than any other comparable property in the neighborhood has sold for since 2004 and the $1050 rent is one of the highest. My brother owns several properties in this neighborhood and seems to think it is a good deal.

@Amit M. - Thanks for the feedback! The property is in a very desirable neighborhood for college students that aligns with my investment strategy - within 2 miles (1.6) of a college campus with 25000+ students that grew 53% from 2002 to 2012. Occupancy rates are 96.5% in this town.

@Will Barnard - Thanks for the feedback! It appears I am overpaying for this property!! I can still get out of the deal based on "due diligence" contingencies. On a side note, the 50% and 2% rule may not work in the market I desire. In your experience, has a specific market ever merited you stepping outside of this rule? OR, if you truly want to make money in this industry, is this a rule I should never break?

Hello everyone,

I am new to real estate investing and would like to take advantage of the wealth of knowledge investors on this site possess! I currently have a deal in the works for 2 townhouses built in 2004 for $220k. Both units are occupied. I'll be putting 20% down leaving a $176K 30 year mortgage @ 5.1% ($11,467.08/yr). Each townhouse rents for $1050 per month ($25,200/yr). Property taxes are $1859.75/yr (both units). Insurance is $725/yr for both units. POAs are $53 per unit ($106/yr). Security Deposits - $1050. Termite Service - $85/yr. Lawn care - $325/yr. LLC Fee - $150. I have budgeted in an additional $100/mo ($1200/yr) for any unforeseen maintenance. I will manage the properties myself.

It looks like I will be netting just over $9325 per year on a $44k investment (21% ROI).

Is this a good deal? Am I missing anything as far as expenses?

Thanks for your feedback!