All Forum Posts by: Kyle Kelley

@Account Closed  Thanks! Insurance may be able to be adjusted down slightly as I dont have the exact policy/pricing for that one yet. As far as taxes go they are accurate, Cleveland Heights has one of the higher tax rates in the Cleveland area

That's right @Derrick Craig !! Just one of hopefully many more. Thank you! 

Thanks! @Mark Del Grosso @Sonny Ngo 

Excellent video! 

@Zoran M.  Kind of both - the seller is a local rehabber that fix and flips and fix and holds some properties. This was a fix and flip turned into hold, that he now wants to sell in order to get money for other fixes. 

So not from a "turnkey" company but with similar circumstances from a local seller. Did I explain that right?

@Aaron Montague  thanks! Good points, I will be saving/reinvesting any cash flow to fatten up the reserves for this and future properties so I could bump that estimate up to $150 per month and still maintain decent cash flow

@Rob Strickland  @Zoran M.   beat me to it - I will be carrying over a similar reimbursement policy that has already been established between tenant and seller

Located in Cleveland Heights 

@Curt Davis  Thanks! Yes I do have a lender I am working with / have talked to and my purchase price/cash invested in this one is very near their base loan amount, so thats why I decided to hold out for the 6 months and hopefully the appraisal value will come in higher and it wont be such a high cost loan but will still allow me to get back most of my initial cash invested. Thanks again!

I am very excited because my first investment property is set to close today! 

It is a cash purchase, total price of $29,850 (market value/comps 45K, my more conservative estimate is closer to 38-40K) for a 2/1 recently updated (December 2012) and tenanted with new 1 year lease (this was important for me as an out of area investor). Seller agrees to continue PM for first 6 months with option to stay with his PM or find a new one after. Rented for $700 per month and tenant pays all utilities. 

So deal breaks down like this:

Total Price : $29,850     Downpayment/Cash Invested : $1500 

Amount Financed @ 6% using HELOC: $28,350 ($170/month P+I)

Taxes : $125 / month     Insurance : $42 / month    Vacancy/Maintenance: $81 / month

Total Expenses/Month (PITI + Vacancy/Maintenance) = $418

Cash Flow = $282 (first 6 months PM included in purchase so no extra, after 6 mo. will be about $70 less, so closer to $200 CF)

My plan is to refi the property after 6 months to get a 75% LTV cash out refinance to get a better rate and be able to replenish my HELOC for other properties/future investments.

Let me know how you guys think I did on this "hopefully soon to be" first deal!