All Forum Posts by: Jeff G.

I happen to be with foremost as well!

I just got insurance for my first property that is over 100 years old. Cost was $60/ month and that is with an extra $10 for sewer back up coverage. Also I have 1M in liability coverage. I found quotes all over the place biggest difference is insuring for market cost vs replacement cost. I dont want to insure for 300k for a home I paid 30k for. Hope this helps. You have to weigh your risk to save $300 per year if it works for your situation. Jeff

Financing would look like this (because they are looking at it as a longer term investment)

5 year note on a 30 year am with 4.5-5% interest rate.  

properties would be 100% financed, intention would to have property either paid off or simply refinance to conventional loan at 5 year mark.  We are only talking 30-55K properties here.

I have family members asking to private finance me multiple deals asap. I am just about to close my first deal in a few weeks. Financing deals with family, Good idea or bad idea???? My market has 18-20% cap rates and positive cash flow of $4-7k on 40k investments annually.

Attorney would be my vote.  I have one in the family so its easy for me to say though.  

bought for 38K.

2/2 duplex. 

fully occupied

rents for a total of $995

figure positive cash flow conservatively of just under 6K/year

I got an accepted offer on my first rental property!

Thanks Guys, the duplex is actually in better shape too.  new windows, furnace, water heaters...

Though the single family is a 4 bedroom which is in high demand.  My gut says duplex and so do the numbers!

Okay I was originally looking for duplexes only but my realtor gave me two great properties one is a duplex one is a single family.  I cant make a decision which way to go for my first deal.  Both are in excellent shape, no deferred maintenance, fully rented through May and the renters all want to stay.  Here is how they stack up:

Duplex 2/2:

Asking 39,900 should be able to get for 35K

Total monthly rent: 995

Taxes 1435

With all my calculations, 5% vacancy, 10% maintenance and everything else using the BP rental analyzer I get a yearly positive cash flow of $6321.01

Single Family (4 bedrooms)

Asking 44,900 should be able to get for 40K

Total monthly rent 957

Taxes 1716

Same thing with all my calculations I show $5433.64 annual cash flow.

So here is the dilemma, with the duplex though both renters want to stay it will likely have higher turn over in the long run and it doesn't have off-street parking which will make it a little bit harder to rent.  The single family has 4 bedrooms and is very desirable. This will be my first of two properties this year and I plan on buying 3-4 more next year.  So I will have a mix of single and duplexes no matter what in the long run. Got the first deal jitters I guess and could use some insight from you seasoned guys and gals out there

Thanks

Jeff

Any insight on this one?