All Forum Posts by: Nicholas Smith

P&I: $449.90

Taxes: $66.25/month or $795/yr

Insurance: $1092/yr

Vacancy Rate: 5%

Capital Expenditure: 5%

Repairs & Maintenance: 5%

Garbage: $15/month

Going to manage the property myself.

Hey guys. Thanks for the speedy responses. I'm currently at work and my numbers are on my home computer. When I get home this afternoon I'll give you all more information.

Hello guys. I've bought my first property as a FHA live-in flip in 2016, but after being 80% done I'm starting to change my mind on whether I should sell it. Especially since I don't have anywhere else to live. So I was looking around at properties in my area and found a duplex. I wanted to see what people with more experience think about this analysis of the property.

Both units are occupied and are renting at $750. 

The seller is asking for $115,000 but I was going to offer $110,000

I haven't seen the inside of the house, but since the house is fully occupied I wasn't going to do any repairs on the place yet.

Down Payment: $23,000

My analysis says:  $1,500.00 MONTHLY INCOME 

$847.15 MONTHLY EXPENSES 

$652.85 MONTHLY CASHFLOW 

11.51% PRO FORMA CAP 

$13,233.00 NOI 

30.13% CASH ON CASH ROI 

11.51% PURCHASE CAP RATE

Do these numbers make sense or am I missing something vital. Every time I do an analysis I feel like I'm wrong so I don't pull the trigger. I think I've been having analysis paralysis. Any help will be appreciated.

@Nate Watkins @Kevin Harrison Thanks for the advice guys. The seller told us while under contract that he feels like he probably had under played the price of the house based on the flood of calls to see it. We beat everybody to the punch by offering 1,000 more than the asking as soon as we saw the pictures. I still want to fix up the basement for the square footage. Nothing fancy. And while doing research I saw houses with the extra square footage that will be added after finishing the basement going for about 150,000. But I will still do some research and ask my realtor and others from the area what they think. Thanks again you guys!

My fiance and I have finally accomplished buying our first real estate property. It will be a live-in flip. We purchased it with an FHA loan. I wanted to know what people think about our plans.

The house is in Jonesboro, GA. It is a 2,200 sqft SFH with 3 bed 2.5 bath. It was bought for $110,800 with an appraisal of 121,000. The renovated value is estimated at $148,000. It has a 1,100 sqft unfinished basement as well. It has a half finished full bath and has possibly another bedroom and family room as well.

Our plan is to DIY as much as possible with my contractor dad. Do you think it will be smart to start on the basement as the first big project and try to build more equity into the home and then in maybe 2 years sell the house?

Estimated to be around 168,000. We actually are looking at other houses as well, since this house was dragging so long.

So after calling the broker and explaining that the seller's agent has been MIA, the seller finally called my agent after 2 more days. He apparently has 12 offers on the property based on how many CCs he had on the email he sent my agent. The house was supposed to be partially renovated but the people put peel and stick flooring down that resembled hardwood floors. It looks TERRIBLE. So all the flooring needs to be redone. Not to mention there is a water leak under the kitchen sink so the sink cabinet and everything needs to be replaced due to rot. The whole house needs to be repainted as well. Listing price is 145,000 So I made an offer of 133,000. If I'm going to be in a bidding war, my best and final is going to be 138,000. Do you think this is a good idea?  

I'm definitely interested in attending.

Thanks! I was thinking about doing that. @Hattie Dizmond

Thanks for the response first of all. I have an agent who i go through, since I need the lockbox codes. To his defense, I called him to ask about what was going on and he told me that he had been trying to contact the seller's agent. He said that he can't reach him. I took it upon myself to call a couple of minutes ago and the seller's agent didn't answer for me either. 

@Christopher Brainard