All Forum Posts by: Kevin Hughes

At first glance, I see that the GOI would be $1,900+ with both sides rented out. The 50% rule would leave you with $950 to pay the mortgage in order to break even. Your mortgage payment is $1,375 per month, which would be a $425 monthly deficit even if both sides are rented out. However, your run down of expenses show only $570 per month instead of the $950 estimate from the 50% rule. Are property taxes, utilities, garbage removal etc. included in that "total expenses including loan" number?

I'm new at this, so forgive me if I'm just plain wrong. I understand how you got $266 per month cash flow with these numbers. I just am confounded as to how the expense estimate is so low. 

Is there a veteran who can confirm or clarify this? Good luck!

If I were you, I would take this as a lesson in why you should not advertise via your personal facebook page. Carry on!

Keith,

First of all, I'm glad to see this post because it seems like we are in similar places in life. A lot of people on here seem so far ahead of me in this journey that it seems impossible to get there. I'm encouraged that you have had success in buying your first property- something I am currently working towards. I have a few questions:

1. How did you find the property as soon as it was listed? Someone mentioned Redfin. Is that was you used as well?

2. What was your experience in getting approved for a FHA loan? Any recommendations on how I can do that process well?

Thanks! Congrats!

I'm digging this thread. Check these books out.

This thread was helpful. I agree with streamlining the process by making your best offer up front. Good luck!

If he is asking $75k, then I think $45k may be too low. Maybe try running the numbers at 25% off the asking price, so $56.250. If the numbers are good there, then make an offer. Also, you could try to get creative with how you structure the deal. That could help make it cashflow. Good luck!

I've lived in Pilsen for two years now and can attest to its gentrification process. My wife and I are hoping that our first rental property can be there. We are moving as fast as we can in order to buy before the boom. It's crazy to think that Pilsen as close to the Loop as Lincoln Park is! There are so many great restaurants and property renovations. Plus, there is a large residential complex coming in that will probably be the tipping point. Get in while you can!

Great job. I hope my first deal goes this well.

With the help of this article and The Ultimate Beginner's Guide to Real Estate Investing, my wife and I are developing our business plan. Thanks!

Lumi,

You guessed correctly. Chicago, Lakeland, and San Diego are places where we have family. Our family in those areas have expressed a willingness (and experience!) to manage our properties for free or cheap. These are also places where we want to visit frequently (with tax deductions!) in the future. We are early in the process right now. My wife is studying up by listening to Bigger Pockets podcasts. I am working on clarifying a business plan for her to review. We are spending this week doing those two things. As of now, we see ourselves as buying about 5 rental properties and holding for about 30 years to supplement income. Critiques?