All Forum Posts by: Mia Edgar

That management insurance is actually mortgage insurance and P/I is property and interest. The real estate agent I'm talking to is also a property manager and she only charges a fee for placement of tenants not a yearly fee? Opinions on that?

*return to be stationed again

I'd be living in one of the rooms yes. The property is in San Diego, kind of a cheaper neighborhood compared to downtown. but I'm military so id probably leave after a year, but hopefully return to be stationed in SD again. North Park is not the safest but definitely a trendy neighborhood. My BAH for San Diego is $2000/month so if I could get 4 occupants I'd be dipping into my own rent for a while but eventually I'd like to get to $5000

Hi! 

I'm looking to hold and buy or house hack and am completely new to the whole process. I found a duplex, 2 unit establishment (3 bdr/1 ba and 2 bdr/1ba) with a pretty good location.  Asking price is 475,000.

I think I'm having a hard time with the CAP calculation.

With a rent of $5000 ( so above the 1% rule)

Property Taxes/month = 450

Insurance = 67

HOA = 0

P/I = 2223

Management Insurance = 392

Maintenance (5%) = 250

Vacancy (10%) = 500

per month $5000-3882 = 1118 cash flow

Expenses - mortgage every month = 450 +67+392+250+500 = 1,659 x12 = 19,908 per year

Cash flow = $13,416

CAP = in the negative.

Am I doing this calculation all wrong??

What are the best neighborhoods in SD to invest in? Hillcrest and North Park seems to be creeping up in popularity. East village is great but already pricey. Is it better to invest in a 'upcoming' but still moderate crime neighborhood or just go for the pricey, harder to find deal neighborhood?

if I increased the rent to $2400 or $1200/person after I move out, positive cash flow would be $717. But CAP would be $8604-$6552= $2052/219,000, which still only comes out to 1%

Well there are not many 1 bedroom/ 1 bath but I found one for $1300 in that neighborhood. I do like the idea oh house hacking since I move frequently for the military and have access to VA loans. Because I'm not putting anything down and just have to pay for the lender fee and closing costs the cash on cash would still be pretty high 30-50%?

yea so I can get $0 down loan and then rent out one bedroom for $1200 maybe I pay $800 for myself. So I'm kind of saving on my own rent. 1 bedroom/1 bath is about $1100.

I'm looking into buying a 2 Bdr/ 2 Bathroom in a neighborhood in SD somewhat near downtown and the hospital I'll be working at. Math I've done so far: Asking price: $219,000 P/I=836 Property taxes=246 Homeowners insurance = 91 HOA=210 Vacancy (10%)=200 Maintenance (5%)=100 Rent=$2000 Monthly cash flow = 2000-1683 = 317 The cap rate I'm getting a negative number so should I increase the rent or just give up on this property? I'll be living there for the first 1.5 years so it'll help by rent out if I split it $1200/800. Is it a worthy investment ? All condos in this same area are more pricey. Should I abandon the idea of investing in a pricey neighborhood or go for it and plan on buying and holding for 10-30 years.