All Forum Posts by: Kevin Rollins

I am just starting out as an investor. It seems when I run numbers on a potential deal, the month to month expenses are a bigger issue than the mortgage. What I mean is when I run numbers as Brandon Turner suggests, I need to alter the price of the property a ton to have it make a deal work. I'm able to get the numbers to work quicker if I'm able to add value to the property so I can increase rent or somehow reduce month to month costs. The expenses vs. income seems to be a bigger issue than a change in the cost of acquiring the property. I'm open to any thoughts from others on this topic. Is there something I'm not considering?

I'm looking at purchasing my first duplex for $120,000. I'm hearing in some markets getting $200 a unit is good cash flow. Is this still the case when the initial investment is $30,000? Does tying up $30,000+ to make $400/month reasonable? Thanks for any advice as I get started down this road.

Sorry,

It's a two unit currently renting for $1850 total. (although according to rentometer this may be slightly under market)

Purchase Price: $120,000

Closing Costs: $5500

Interest rate: 4.875% over 30 years

I've included 5% for Capex, vacancy and repairs as well as 10% for management.

This is the number I got from a loan officer. It includes taxes and insurance in escrow.

I'm a newbie to real estate investing. I'm open to any input on my analysis of the attached property would be greatly appreciated.

Would you move on this property?