All Forum Posts by: Karen O.

Woodlands can and tend to be taxed at a lower level than a building.  

I'd check with local tax assessor to determine if the tax is appropriate...

type Fortune builders, gurus or than Merrill into the search line.  You'll see plenty of posts.

Type fortune builders in the search line.  They've been mentioned a time or two.  also type gurus -FB is considered one - and you'll find thoughts previously shared.

PS maybe a little less because of the cliaing costs andvpossible appraisal costs.  

Hope this helps.

No.  If after repair you have a $200k property, that you are not living in, you likely won't be able to get 100% financing.  But you might be able to refi for 75% or 150k, you'd be left with 90k after paying off the private lender.  And you'd have 50k in equity in the property.

You should be more concerned about the kitchen and bath and roof than the floors.

There are several accountants who regularly post.  Two from the US that come to mind are Amanda Han and Brandon Hall. If no one answers your post, consider sending a private message. They've both been great about answering questions.

PS I think the answer re: cap gains will depend on whether you lived in the house.

These floors look to be a in good shape.  Go for the screening and poly.  They'll be great and work for every decor.  A few area rugs for those who want to soften things a bit.  And they'll be just as cost effective as carpeting.

Assumptions:

Purchase:  120K Cash

Monthly rent inc: $1100

RE Tax: 2.8% of $120K = approx $3400 >> $285/mo (might be high)

Insurance = $100 

Vacancy @ 5% = $55

R & M @ 5% = $55

CapEx @ 8% = $88

Property Manager @ 8% = $88

Total Expenses: $671/mo = $8052

Net Cash Flow:  $429/mo = $5148/yr

Cash on Cash = 4.3% (COC goes to 5.17% if no property manager.) This is better than the bank, but most investors want a higher CoC.

With $30K down, a $90K mtge @ 4% your cash flow would be $0.  Also no good.  

What'd you get?

Congratulations on a job well done!