All Forum Posts by: Stanley H.

you should absolutely connect with @James Wise  he knows the Cleveland market in and out.  I have nothing but good things to say about him. 

@Jean Bolger  @Jon Tyler 

Thanks for your guidance. I think you guys are right I should take into account the lease up fee etc...

Thanks for pointing the utilities, i missed out on H2O which would be 1200 per year.

Also i bummed up my maintenance to 10% and management to 15% and reduced rent to 1300

I now get an cash flow of $285 doesn't look so rosy now :(

cash on cash financed:- 20.4%

cap rate:- 9.0%

Current rent according to the owner is 900 bottom and 500 top but i feel thats too much.

The estimates are based on comps, current rents are family members of the owner. 

I think even with the 50% rule the cash flow comes to be $375 for the duplex.

I feel the issue you talked about should come to notice on home inspection.

Guys,

I would like to know your opinion on this duplex deal i am planning to make an offer on.

its a 2/1 up and down in a good area. rent estimate for the area are $650 , i predict the upper will go easily for 500 and lower for 800.

Price:- $83.9k 

Taxes:-$2100, 175 per month

Rent:- $1350 (conservative)

insurance:- $70

management:-$130 (10%)

maintenance(7%) $91

vacancy rate:- (8%) $108

cash flow: $427

cash on cash financed:- 27.9%

cap rate:- 10.4%

It looks good on paper to me what are the things I am missing here?

Hi there, I am from raleigh as well , just starting out. I think you should offer the appraised price or negotiate towards it. The difference between appraisal and purchase price should be minimal. If you were to get a mortgage you would only get upto the appraised value. Hope this makes sense.

How did you guys hear about the webinar?

Welcome to bigger pockets. Brandon Turner how does one know about the webinar?

I feel your best bet is Dave Ramsey..... cant enforce it more. He has sound principles in Baby steps that he recommends. Dont take his advise for investing but for Debt he is king.

You might want to call his show to talk to him as well, i am sure he will have some great advice for you there. 

Hi guys, I am fairly new to bigger-pockets. I wanted to know your opinion on owning your own house vs renting an apartment? What makes sense? And why ? Your opinion matters.