All Forum Posts by: Michael Krassos

Thanks all, as I suspected.

I'm working with a turn-key provider to prodie SFH for rentals, who basis his Cash on Cash on total investment made, i.e. including all closing costs along with down payment toward mortgage. I've seen on this site however that many suggest only basing it on equity down only.

I assume there is no standard, any guidance appreciated as I decided on certain %'s in different areas to determine good investment candidates.

For Buy and Hold

Hi all, I am new to this and now taking action on my business plan. Next step for me is to determine my comfort zone including determining sources of deals and evaluating. Can you please advise/confirm my understanding of sources for the following information - are they typically available from a public source, i.e County, Borough records:

1) Absentee Owners - is this determined by looking at the owners address on county records?
2) Abandoned - Walking streets and determining based on state of property?
3) Probates/Inherited Properties?
4) Pre-foreclosures, foreclosures - How can I determine before these are listed on MLS?
5) Expired listings - are these determined from MLS?
6) Tax liens?
7) Short Sales - are these only determined through a realtor and MLS?

I greatly appreciate any help.
[b]I never worry about action, but only inaction. - Winston Churchill

Hi again Pete, yes please do share specifics on your sources, looking for any help I can get. Thanks in advance.

Hi all, been listening to the podcasts since inception and reading books for months now. Just joined the BP website and find these resources AWESOME!

I am ready to take the plunge and invest in Single Family Homes and Buy & Hold. In my area taxes are high however and I'm losing confidence my strategy can be enabled locally - any advice from local investors is appreciated. I have some cash and figured I'd see if I can qualify for a conventional loan to cover the balance for first home, then look to alternate funding methods for next properties.

My main goal is to help fund retirement buying homes in areas that SHOULD appreciate, so I have no problem hanging on to properties for the long haul. It would be nice to have some cash flow also. A secondary goal would be to earn enough cash flow to quit my corporate job :-)

Hi Pete, I am new to the BP website and just getting started in REI. I am in Northern NJ and curious whether you are able to find properties in area that cash flow, and why you decided to purchase your first two purchases out of state.

Please advise if you are willing to chat, possibly meet up to help me better understand the local market. I'm trying to decide if I should/can invest locally or if I should go out of state.

Here's what I have for expenses, recall I am estimating $1800/month rent with 5% less for vacancies. The kicker in this area are the Taxes:

3.1 Electricity Paid by Tenants $0.00
3.2 Gas Paid by Tenants $0.00
3.3 Water $300.00
3.4 Rubbish $0.00
3.5 Insurance $900.00
3.6 Taxes $10,000.00
3.7 Management Fee $0.00
3.8 Resident Manager $0.00
3.9 Office Expenses/Supplies $0.00
3.10 Advertising $0.00
3.11 Lawn/Gardening Paid by Tenants $0.00
3.12 Pool/Spa $0.00
3.13 Janitorial $0.00
3.14 Maintenance $500.00
3.15 Cap-Ex (Repairs and Repl.) $2,000.00
3.16 CATV/Phone $0.00
3.17 Accounting/Legal Fees $0.00
LLC $0.00
Refiancing $0.00

I've done some additional analysis using the APOD, and assuming a lower 'distressed' purchase price of 140k I get the following: Cash Flow Before Taxes: $56, Cap Rate 4.9%. For those familiar with the region, do you not think worthwhile to pursue if I assume an appreciation? I have no issue holding the property for the long haul, my goal is to build retirement income, I have a stable full-time job. Thoughts?