All Forum Posts by: Lindsay Galey

@Michael Seeker Wow!!! Thank you for the detailed response and for taking the time to really look into the property and give an honest assessment. Being this is my first post on the forum, I am blow away by the response. I was worried I wouldn't get a single reply. 

@Andrew Johnson Here's the thing: we are in the process of selling our primary residence and are looking for a house hack. We have been evaluating properties looking for a good deal and have been coming across the issues discussed in this post. We considered reverse engineering the sale price needed to make the numbers work but have been reluctant to make any offers at those price since they are so much lower than the asking price. So to answer your question, we are newbies who are too scared to make an offer largely because the price difference between a cash flowing offer and the asking price are so large. However, thanks to you guys, we have a new found confidence and will be making low ball offers like the dickens, lol! 

@Pavel Reyes Valdes - Thank you for the reply. I sent you a connect request so I can private message you in the future. However, in the meantime, I will just post answers to your questions here. 

Property address is 1116 Garvin Pl, 40203

I used 3.5% as down payment but could go higher. Currently looking at FHA loan but that is not a necessity. Did include PMI but just guessed on the amount per google searches. Property is a duplex with 1 unit currently rented at $800/month so I used $800 for second unit.

Thanks again for your help and advice!

@G. Brian Davis Thank you for the reply. You are right about it being hard to find a good deal, but I guess if it was easy everyone would be doing it :-). I appreciate the advice on getting off-markets deals. We've been following Brandon Turner's and Scott Trench's advise on making sure to include cap ex, vacancy and management fees and feel better now knowing that the numbers don't work because the deals are bad, not because the numbers are necessarily wrong. 

Do you think $100 per door is a good target? 

Would you recommend I just run the numbers and figure out what price actually works for the property and make an offer even if it is incredibly low?

Thanks again for your help and advice!

Hello everyone!

My name is Eric Galey and my wife (Lindsay) and I are trying to purchase our first multi-unit property to house hack in the Louisville, KY. However, we are getting discourage when evaluating properties using the BiggerPockets Rental Property Calculator. Just about every property we evaluate does not even come close to getting us to at least $100 per door, when evaluated as if we were not going to live there. 

Here's an example, please tell me if i doing something wrong, making false assumptions, etc. 

See image below:

We used 5% for vacancy, repairs, and cap ex

We used 10% for management fee but would manage ourselves while living there. 

To get to $100 per door would have to get the property for 130,000 but it's currently listed at 205,000. 

What am I missing? Please help!

Thanks in advance!