All Forum Posts by: Kenneth Cheston

Johnny R brown - I'm not in a position to tell you the difference although NOI does consider depreciation (all expenses) where as Cash Flow is monthly net profit. I think the more common term is cash flow so that's my fault for not using the correct term. Thank you for bringing that up as I am also a newbie here.

Investopedia is a great site that I've used over the years that speaks a little bit to the difference although it insinuates that cash flow is a business term where NOI is a real estate term so it may muddy the waters.

https://www.investopedia.com/a...

Okay thank you Tim you have been very helpful.

Thanks Tim - that's a lot to unpack but I appreciate your insight. I have some questions below, but in general I may need to question investing in Baltimore altogether if the pricepoint is much higher outside of hunting for foreclosures or fixer-uppers. Thank you!

1.) I'm not familiar with Unreimbursed Utilities - would you mind explaining?

2.) Why is CapEx a fixed $75?

Happy Holidays!

I'm looking to get my foot into the game by purchasing a "turn-key" townhouse in the affluent areas of Baltimore. Here are some of the key factors. Looking for feedback especially if you are a Baltimore investor! Thanks in advance.

The Deal:

Purchase Price: $200,000

Down Payment: $30,000

Closing Costs: ~$10,000 (points, premiums, escrow, etc.)

Loan Amount: $179,000

Interest: 3.625%

30 Year Mortgage

______________________________________

The Margins:

Assumed Rent: $2,000

Monthly Expenses:

P & I: $983

Insurance: $33

Tax: $90

Maintenance: $200 (10% of rental income)

Vacancy: $166.67 (One month's rent annually)

CapEx: $100 (5% of rental income)

Total Expenses: $1,572.67

NOI: $427.33/month

*Zero utilities as these will be charged to tenants. There are no fees for trash in the Baltimore area.