All Forum Posts by: Miles Viant

@Matt Dombrowski

Sure! 

Purchase Price: 252,000

Down Payment: 25,200

Closing Costs (For Land and Construction): 12,000 

Total Investment: 37,200

Projected Rents +2k/mo

Taxes -314/mo (R2R said $1850, but I did not find that to be possible during due diligence. Could be wrong, this is my first property! Still learning. But like to play it safe, than sorry)

Insurance -98/mo (including flood ins)

Property Mgmt 8% -160/mo

P&I -1034/mo (3.65%)

Reserves 8% - 160/mo

Cash on Cash: 231/mo 

Comparable Homes in this neighborhood are selling over 300k

SFR rentals in this neighborhood are renting for 2k+

Investment Info:

Single-family residence buy & hold investment in Cape Coral.

Purchase price: $254,000
Cash invested: $37,200

NEW CONSTRUCTION. WILL BE READY IN JAN 2022!

What made you interested in investing in this type of deal?

I wanted a new construction as my first investment property to lower the risk, less risk for vacancy, maintenance issues. This new construction homes come with 1/2/10 warranty. Southwest Florida is red hot right now and Cape Coral is a beautiful area and the property is located a few miles from a luxury development including shops, restaurants, marinas, & residential living, replicating what is down in Southwest Cape Coral. Opportunity for built in equity in an 'A' graded neighborhood

How did you find this deal and how did you negotiate it?

Simply being a subscriber to Rent to Retirement. New Construction, no competition which was a plus!

How did you finance this deal?

10% down, conventional financing , construction to permanent loan

How did you add value to the deal?

Appraisals of these exact builds in exact same developing neighborhood are appraising for 300K +

What was the outcome?

Purchased the property for $252,000, appraisal came back at 265K before even closing on the property for the construction loan

Hey Robert

I am going to go off what Caelan mentioned above. You have 387 cash flow after your expenses, with 10% to maintenance and vacancies puts you at $242. I, personally, have to incorporate maintenance and vacancies to see if a deal makes sense, as those are guarantees. 242 per month, 50k invested (after closing costs) is 5.8% CoC.

Now, bumping those rents to generate $1700, that brings your cash flow 467, 11.2% and that is including maintenance and vacancy at 10%! Now I am definitely interested. 

Are you managing this property yourself? Must consider that as well, property management can run you 6-10% of your rental income..if youre managing it, I like the numbers

I typically like to see CoC above 10%

hope this helps!