All Forum Posts by: Nicole Harrington
Nicole Harrington has started 32 posts and replied 70 times.
Post: Looking at my first deal
- Posts 75
- Votes 24
Originally posted by @Brendan Miller:
Hi @Nicole Harrington, it'd be helpful if you itemized the expenses to show exactly what you're accounting for. Just looking at the numbers you provided, the ratio of expenses to gross rent seem a bit lower than what I'd typically expect, so better understanding the detailed expenses will help you get a better response of whether it's a good deal or not. I use gross rent multiplier as one of my quick initial metrics, and I aim for a GRM less than 10 typically. The GRM on this deal is 12.2 ($310,000/25,400 = 12.2) so it wouldn't pass my quick check, but that doesn't mean I wouldn't evaluate it further.
The maintenance is a typo should say $1000, not $100. So if I understand you correctly, the gross rental income is $26,400 I should have $2,640 in repair maintenance.
Post: Looking at my first deal
- Posts 75
- Votes 24
Originally posted by @Caleb Brown:
What area is this in? Doesn't look great but if the area is hot it could be worth it for the long haul
Roswell GA Liberty Square neighborhood
Post: Looking at my first deal
- Posts 75
- Votes 24
Originally posted by @Brendan Miller:
Hi @Nicole Harrington, it'd be helpful if you itemized the expenses to show exactly what you're accounting for. Just looking at the numbers you provided, the ratio of expenses to gross rent seem a bit lower than what I'd typically expect, so better understanding the detailed expenses will help you get a better response of whether it's a good deal or not. I use gross rent multiplier as one of my quick initial metrics, and I aim for a GRM less than 10 typically. The GRM on this deal is 12.2 ($310,000/25,400 = 12.2) so it wouldn't pass my quick check, but that doesn't mean I wouldn't evaluate it further.
@Brendan Miller thanks for the tip, I have updated my post and explained the expenses. Does it make sense what I wrote?
Post: Looking at my first deal
- Posts 75
- Votes 24
Is this a deal or not?
I am looking for a longer-term rental The property needs a little TLC could be rented out right away or do some small TLS and get the higher calculated rent.
PP $310k GAR $25400 Total expenses $6,400 (Taxes $1900, Insurance $1,300 Maintenance $ 100, Vacancy reserve $2,200 self managing, Utilities & trash and lawnservice paid by tenant)
NOI $20,000 Cash flow $6,275 Cash on cash return 7.82%
Now since I have never done this, I have gathered the information and plugged the numbers in where I could. I have not counted in any repairs or updates, so I know that number is missing and should go into the calculation.
Thought, what do I need to look out for?
Originally posted by @Nicole Harrington:
Patrick, thanks for your kind welcoming words. I do appreciate it. Say, your wife doesn't happen to be Julia?
Originally posted by @Jimmy Woodard:
Welcome to BP @Nicole Harrington! If you do go the Airbnb route feel free to DM me and I'd be happy to provide some tips based on my own experience. Happy deal hunting!
Thanks that is great. I appreciate that
Ryan, I am talking about further out, Marietta, to Dallas north to Carterville, Rome Possibly Ellijay back down towards Milton Roswell, Alpharetta back to Marietta, and anything in between that area. Hope that makes sense.
Patrick, thanks for your kind welcoming words. I do appreciate it. Say, your wife doesn't happen to be Julia?
What is the going rate for Hard Moneylenders to charge? Atlanta GA area.
Hard Money vs Loans, what's more beneficial and why?
Hello, a quick intro to myself, I am a Realtor (6 years) and am now looking into doing my own investment purchases. I am in the Northwest area of Atlanta GA. I need to learn about everything really, Hard money VS loans, Flip or hold, etc. One thing I do know, my first one is going to be a single property. I am leaning towards renting but could be an Airbnb as well. I am excited to finally join and check out the podcasts and videos. Thank you to everyone for sharing openly your experiences and knowledge.