All Forum Posts by: Michelle Elsaid

Hi @Scott Dorsett!

I would reccommend getting access to the MLS through a realtor. My realtor set me up with a great website where I can create all my own searches and get tons of details on the house including taxes, HOA, etc.

Another route, is just to practice by using information you find on sites like zillow or trulia.

For a very basic analysis you will want to look into two rules: 2% Rule (1% in some areas) and the. 50% rule. These are quick numbers that can tell you if you want to analyze further and you can find topics on these on the site.

I watched a webinar on analyzing deals that really helped me get started in creating an excel worksheet to use.  I can send it to you if you would like.

For a buy and Hold here is a quick summary- make sure you average all these costs to be on a monthly basis (sometimes taxes and HOA are annual or semiannual)

Monthly rent expected MINUS

Mortgage Payment 

HOA (Look in the country appraiser's records or it can be found on most RE sites)

Taxes

(Look in the country appraiser's records or it can be found on most RE sites

Insurance

PMI (if applicable)

Vacany rate (10% - depends on your expectations)

Capex (20% - Big expenses related to maintenance and improvements - depends on current condition)

This will give you your cash flow in dollars each month.

*You also want to look at your ROI and COROI. You can find more details on how to calculate those on the BP site.

*You will want to analyze the purchase price of "market comps" or market comparables, by looking at the sale prices of similar houses in the area.

Hope this helps!

Great job! What was your purchase price?

@Chris SeveneyWould you buy this property? I am not in market right now but trying to learn how to analyze these sorts of deals for when I make a purchase.

Woops - I was calculating based on my mortgage payment rather than my monthly rent. Thanks for the feedback - that's a good way to formulate a capex rate! @Chris Seveney

I am looking at this 14818 Astrolyn Street, Winter Garden, FL duplex. Currently Rented for $650/ea side. $1300 Revenue. Listed for $99K. Beats 1% rule (good for florida)

Now, value of the house aside (I think it is worth much less), this looks profitable even with a low down payment. It is in a high income town, not so great neighborhood but low crime. Why has this been sitting on the market? Thoughts?

Please see quick math here for a $10K down payment ( 5% IR, 1% PMI, 900/annual taxes, $0 HOA)

Mortgage/Tax/PMI/Insurance: $690/month

Capex (20% of payment): $150

Vacancy (10% of payment): $75

Management: $130

With $1300 in rental income this generates at least $255 a month - better if I increase my downpayment.

Here is zillow link:

http://www.zillow.com/homedetails/14818-Astrolyn-St-Winter-Garden-FL-34787/82077144_zpid/

I'm interested in these low income properties so i'm curious what you think of this deal. Thank you!

Thanks for sharing @Colleen F.! It sounded a little strange but wanted to make sure I was seeing the whole picture. Have a great day!

Hi everyone, I'm sure we've all heard about setting up an LLC to protect yourself and assets from unexpected problems in a property. I've heard this one can be difficult to do. I recently heard ANOTHER option is to put all your assets in someone else's name. Is anyone aware of the legalities, pros/cons, of this both for the two scenarios below - assume both parties are trustworthy long term.. Married and separately owning assets, house in one name, other assets in the other name Or, single and putting asses in another family members name. I'm curious that this is encouraged and what the details are. Also curious to hear what you have done for risk mitigation on your properties. Thank you!! -Michelle

@Robert Hetsler That sounds great! I will send you a private message.

@John Kent, thanks for the welcome! Both groups look very valuable, I will check them out!

Hi everyone - has anyone found any updates since these postings? I am also looking for meetups in ORL, FL. I will be attending the CFRI starting January (cannot make the next meeting before holidays).