All Forum Posts by: Manuel A.

Not an expert (in anything for that matter) in rentals but I believe the "standard" is people look for their total income for rents to be 2% of the price paid which would be $5,600. You have 1.3%.

Now you plan living in the Coach House (not sure what that is) but I'm sure that means you'll be losing one of you income streams. So when that time comes you be getting 3/4 of $3,665 which is $2784.75 which is 0.9% of purchase price. So that may be a little low.

On here they also like to say, over time, 50% of your rental income will go to rehab which would be $1832.5/mnth. On top of your payment of $1970/mnth, you'll have left over theoretically
-$137.5/mnth... Fully occupied that is.

So theoretically it's a loss. But I also think 50% is conservative. Then again, it's a 4-plex... With this 50% rule it would mean $22k would be needed in repairs per year, averaged over time. I think it's sounds like over kill, but maybe it isn't. Personally I couldn't fathom $15k in repairs on a 4-plex per year, but I've never done it, so maybe someone can share.

Anyway, if you can keep under $15k repairs/year, you should do good. Profit around $5k per year plus getting closer to paying off and owning a 4-plex! Then if all goes good and QE3 causes house prices to rise, maybe you can cash out (before the collapse) and do bigger things. So much can happen! Welcome to BP!

Manuel

These recording are very nice. The quality is perfect, plus when you download and follow along with the powerpoints (http://www.biggerpockets.com/conference/presentations-from-the-2012-biggerpockets-real-estate-investing-summit/, the recordings are (at least the presentations I've listened to so far) very informative and fairly in-depth. And I plan listening to the other presentations to learn about other forms of REI like note investing.

There's plenty to soak up from time management to rehabbing (2hour 30 minute bootcamp!) to notes to wholesaling to everything else that you didn't think of. I've already gotten more ideas and strategies I found on these recording to implement in my current plans. I feel revived to keep chugging and land my first deal!

Thanks Joshua Dorkin and all the speakers on the recordings!

I think that we're set for house prices to go up, up, up again. For maybe the entire fiscal year and then another crash. A much worse crash.

In other words: Real estate bubble. Again...

Manuel

For the houses I've looked at, the comps are usually like maybe a block away so about 1/5-1/4 of a mile.

There doesn't seem to be an address on either of your comps so just know they should be within, I think, 1/3 of a mile or less. Also, I'm hoping someone more experienced will give some input but, the different framing might matter on these comps as well.

Plus the house your looking at is 2bed/1.5bath and your looking at 3bed/2bath and 2bed/2bath for comps. Then comes the problem that two of these comps are from 2011.

So instead of the critique, here's what I think you should look for:

Comps closer to 2bed/1.5bath (perhaps the 2bed/2bath will do), comps closer to the current date (like within 3 months), and make sure the address is close in proximity (1/3 of a mile is pushing it...). If you ask an experienced Realtor they'll do all the work for you, free of charge. Just ask for comps for the house you're looking at and they should know what to look for. It's much easier that way.

I found mine by message a lot of them on Zillow and asking if they were, "investor friendly".

You need comps, go find an experienced Realtor and find good comps. From that, figure out a good ARV. Also get some market data, see where it's headed, inventory levels, and if a 2Br/1B is what people are buying. Also figure out a estimated day's on market if you did rehab it. Then figure out how much in rehab does it need.

Looking at it now, even if $270k was a conservative, good, ARV to go with, they all ready want 70% of ARV, then on top of that you'll need to pay for the rehab and all your holding and closing costs...

Nice! Extremely happy for you! How long did it take for you to find this first place? I'm trying to find my first one...

Really nice quality work though! Congrats!

Manuel

What about a Craigslist post? I'm sure someone will bite? And even "going in" with an inexperienced guy would probably give you tons of valuable insight I'd bet. Maybe even room for partnership.

Manuel

Thanks Dale Osborn! I've already gotten sooo much help from Will Barnard, the community, and now I'm listening to these great recording from the 2012 BP Summit (that I won! Thanks Joshua Dorkin), but I'd be glad to read and learn more, I'll send you an email :D

Manuel

I remember looking into self-storage awhile ago and the main problem with it was that, at least in my area, there's WAY to much competition which lowers the price of self-storage, which lowers any profit out of it...

So you may want to look at that aspect of it first before you continue looking into it.

Manuel