All Forum Posts by: Matthew Ringer

As is doesn't look like it works, but you've not given us enough info to really be helpful. Can you fix up the units and get more rent? Can you generate income from the property from something besides rent? (Convert space into secure storage, laundry that you charge for, RUBS on utilities, etc?). Can you increase rent by maximizing space? (2 bedrooms but you can figure out a way to add a 3rd). Also, as I mentioned above, what is the minimum cash on cash return you're willing to accept? Pay cash for this place, using your numbers, and you're probably around 5% CoC. Is that good for you? If. It what % are you looking for? Then try to figure out if you can hit that % by making some adjustments I mention here. If you can't find a way to hit your # then you just move on to the next one.

Hope this helps,

Matt

Everything cash flows. Put 100% down and you’ll have cash flow. The question to answer is what is your minimum return you’ll accept on your cash? From there the strategy to get that # becomes more clear. 

@A.S. Minor you have some wiggle room then. I’m also not a fan of a busy street, but not a deal breaker. When I see a 2/2 the first thing I think is “Can I make it a 3/2?”  If you can, and you hold for 2-3 years before turning it into a rental, you’re probably in ok shape. Look at the comps for 3/2s in that neighborhood to be sure the equity would be there. 

What are your plans for the property? Long term rental? House hack? Something else?

Dave, @Stetson Miller is a great resource. 

Matt

Might be better off charging higher rent and attracting a better tenant than trying to cover with high deposit. I charge around 25% of the monthly rent as deposit. Never had issues mostly due to tenant quality. 

@Tyler Gibson what does “having some success in Polk county” look like?

Getting 30 year as we speak

@Shannon Kiefhaber We invest in SWFL but have ties to Stuart and love the area. Currently looking at assets in the area. Wouldn’t mind connecting to pick your brain if you’re up for it. 

Matt

There is a book right here on bigger pockets called “The Book on Estimating Rehab Costs” - lots of good info to give you a ball park.