All Forum Posts by: Kendrick Pratt

I believe you can post the results from the calculators and ask people to review.

In some markets deals don't cashflow. Also, many times you may need to negotiate a deal for it to cashflow. It may not cashflow with conservative estimates when buying at full asking price. 

Hi Kendrick, I always see a ton of "calling all investors" type MFH listings for sale.  They are generally all not very good.  BR mentioned in one of his videos that you need to just keep analyzing deals every day and you'll start to see the good ones.  When I first started with BP I did that, and had an easy Excel sheet you can just input a couple key numbers into and it does the rest.

The quick 1% rule will tell you alot: Rental Income divided by Price.  If your result is under 1%, run.  If it's over 1%, it will make very little money.  Over 2% it should be decent cashflow.

For example: $2,000 rental income / $250,000 property price=.8%  Your expenses (unless you pay all cash) will be in the neighborhood of $2,200 and your income is only $2K.

To your point, most advertised deals stink, unless your willing to accept a low single digit return.

So many do not cashflow.  If you post your results, I am glad to help you review it.

@Kendrick Pratt I am always pro house hacking. Especially if you have business opportunities to move around. After each year turn that house hack into 100% investment and move to the next location bringing your VA benefit with you.

It can work, but you need to know your numbers and buy smart. Don't get sucked into the nonsense going on right now.

First, thank you for your service as an investor currently house hacking. It is one of the best options right now until the market starts to cool down, and then as many other people say, just continue building your portfolio with this method or build up enough for a more significant investment property. 

I would also look at properties with garages, and you can rent those out as extra income, and if you have additional parking spaces and your city allows, rent those out as well. 

Hi @Kendrick Pratt, it is a great idea! The VA loan makes it even better.

You need to think about the exit strategy. When you leave the house are you going to rent out the room that you lived in or are you going to rent out the entire house?

Are you going to sell? If so, you should live in the property for 2 years.

House hacking is almost always a good idea. Even if you don't cashflow, you are still breaking even or having a significantly reduced payment.

Hope this helps! Let me know if I can be of any assistance.

Numbers don't lie, so they need to make sense. Having said that, rents will continue to rise with less higher interest rates and less buyers.