All Forum Posts by: Michael Kissel

Sorry didn't mean for it to sound like a pity party!  I guess if it was easy, everyone would do it right?

I was looking for new ideas to try as I've been only looking at listed properties my agent has sent me, some I found on my own but still listings and some for sale by owner found by driving around.  Got some new ideas to try.

Also was interested to hear from others in Buffalo if they were having similar issues - which it sounds like many are.

I will keep plugging away

A few people mentioned that $200 per unit per month after all expenses was somewhat high but that is the number I got off a webinar on this site.

What is a realistic number then I should be shooting for?

Anyone in the Buffalo, NY area that cares to share what their approx. cash flow is per unit per month for duplex, triplex or quadplex?

@Derrick H. Read something inspirational just this morning along those same lines.  You may get 20 no's or 200 no's but that 1 yes will come along when it will be right.  Have to keep the faith and keep trying. The timing was perfect for the way I've been feeling these last few days.

@Shannon K. @Christopher Socha Thanks for the feedback in the Buffalo area.  Sounds like I'm not the only one having difficulty.  Now don't steal my property when it comes along! :)

@David Dachtera DO you mean an actual formal contract offer or an informal verbal?

I'll keep chugging away.  Some good alternate strategies presented.

Been looking at properties for approx. 6 months now with no luck.  They all seem to be way overpriced ($20-$50K even) based on the calculator tool for properties in the $100-$120K range.  I've used the rental property tool to analyze maybe a couple hundred props and found only maybe 10 that had potential that I went and looked at, but no good.  I'll keep looking and analyzing but am feeling a little discouraged right now.  I'm almost at the point where I just want to do something but know that could be a major mistake.

Is this actually not alot of properties and time to be looking?

Anyone in the Buffalo, NY area with experience that can comment?

Being a newbie, I understand that there is alot I don't know.  That's one of the reasons I'm on this site - to learn from others who have done it.  The feedback is great but a little overwhelming at the moment.  Most of the stuff mentioned by @Derrick H., I have considered but not all of it.  So thank you.

I asked this question as it seems every property I have analyzed is at least $20-$30K overpriced based on the calculator and I thought maybe I was doing something wrong.  Have others found it normal that properties are this far overpriced?

Great info! It definitely seems to make more sense to more accurately estimate capex instead of using a straight 10%.  I found the spreadsheet too.  Didn't know yet about the FilePlace, so thanks again.  It might be time to revisit some props.

I've been looking for my first rental property in Buffalo, NY area and using the rental property analysis tool from this site to do evaluations.  I use estimates of 5% vacancy, 5% repair & maintenance and 10% capex, which from my research are typical values to use.  Using these estimates, I have not had any luck finding a property that returns an acceptable monthly cash flow, even when putting in sell prices considerably less than asking.  I'm looking at duplex, triplex and quadplex's and shooting for around $200 per unit per month in positive cash flow, which again seems to be what is recommended.

Are my estimates for vacancy, capex, etc too high?

Is approx. $200/unit/month expecting too much?

Or are seller's just that out of line with their asking prices?

Count me in.  I'm in the same situation as James.  Trying to get started.

I found a 3 unit property in good shape and in a good area near me.  Its a for sale by owner and they are not willing come down on the asking price.  The issue is that at the asking price and current rents, the cash flow before taxes is only slightly over $100 per month total with approx. 2.9% cash on cash return.  A deal not worth doing, right?  However, all the leases are on a month to month basis and the rents are about $100 below market rate.  So if rents are increased to market rate, now the cash flow is just under $400/month with cash on cash return of 9%.  Now its worth considering since its in a good area and I would say lower risk.

My main question is, when doing the analysis, such as using the calculator on this site, do  you ever base it on market rate rents if the current rents are below market?  Or is that a bad idea and bound to get you in cash flow trouble?

the timing on this is perfect! I'm new to this type of investing and to Bigger Pockets but I am overwhelmed by the information and support in my short time on here.