All Forum Posts by: Pete Tam

@Paul Jamgotch @Tom A. @Brandon Krieg Thanks for your great suggestion. I think you guys are giving me good information about the local market.

After reading your post Tom, I feel like I need to get in touch with good real estate broker who can help me to find a deal like what you are talking about. So far couple of brokers have sent me so many properties but numbers didn't make more sense to me except this one. But if you are saying there are properties in good neighbourhood with good cash flow, I have to start hunting down those properties.

@Mike D'Arrigo Yes, my calculation is showing me $55/month cash-flow too. Are you saying that I am calculating very low mortgage rate? Property is located in Michigan.

@Rodney Kuhl Thanks for your prompt response.

Good point about property management. I am not going to use it now but as you mentioned may use in the future , we never know.

I actually calculated interest rate at 4.60% considering the current market rate. Could you tell me why are you using higher rate even we are doing all hypothetical calculation here. We know the rate so just calculating the current rate.

@Brant Richardson Looking at the current market price of nearby houses, it looks fair market value. Do not need major update to get rent hike but my brother going to visit the property for my tomorrow. I dont live there but my brother does so he is going to manage it.

Hello,

I came across a nice property in nice neighbourhood and I did my calculation but being a first time investor, I am little scared and want to run numbers by you guys to make sure I am in the right direction.

Here is my Goal before I put down all numbers here:

Goal: Buy and Hold property. Cash flow is my priority.

Property Price: $125K

I will offer to get it for $120K (max. $121)

Currently tenant occupied, rent is $1200 but as per market rate it should be somewhere about $1300 - $1500.

HOA: $130/ Monthly

TAX Summer: $1803 TAX Winter: $510

My Conservative calculation:

Rent: $1200 / month

Repair/Maintenance: $120 (10%)/month

Insurance: $120 (10%)/ month

Vacancy: $120 (10%)/month

TAX: $2320

HOA: $130/month

Loan payment: $462 /monthly (approx. considering $120 K price)

Could you guys suggest me if I should include any other expenses or just simply calculate 50% rule.

I'm looking it as a good first investment property, any suggestion?

Thanks for helping me to get my foot into RE investment world.

Thanks for updating @Jessica Stevens ...

Is there anyone who is investing / looking for investment properties in Troy, MI or near by areas! Pls let me know if you anyone already has investment property too.

Thanks...

hey @Jessica Stevens thanks for offering tickets here. I will let you know if I can make it or no. Its in weekday so hard to get out.

@Andrew Fingado Welcome to BP. You have an amazing experience in very young age.

welcome to the community @Jonathan Hsieh . I'm learning a lot from this community and sure you will too.

Sorry guys, I am still at work. I'm going to miss all RE investment talk that I love.

@J. Martin Sorry for not able to make it man...