All Forum Posts by: Michael P.

Does it matter how much it cost if it cash flows?

Thank you. I think the realtor is not providing what's necessary for me to feel confident. When I get a pre approval, does my realtor need to show the letter to the sellers agent? I got an approval for 120, I was considering 2 deals from same agent. But I am now going with 1 at 40-45. They know my approval is able to pay ask price. I feel they are now just leveraging that.

I ran the numbers, it makes flow, I just want to make sure the value is there. That is my biggest concern.

What do you mean what's best? Distance? Time frame?

I ask for comps within .2 mile range. They sold 6-8 months ago.  Do banks measure within .2 or a full mile?

Also, I think this was a big amateur mistake.  I was considering 2 houses with the sale agent.  So he told me to get a pre approval for your total bid.  In this case I did a total of 120k pre.  This is covering asking price on both properties.  Was this a mistake?

I have been in the market for an investment prop.  I found something.  It's a wholesale deal.  So the buyers agent and sellers agent from the same company, I feel like the obligation to the buyer is not the same when the agents can simply discuss my financial situation and leverage it depend on my pre approval.  Also, is anyone going to do a better analysis on my deal then I would?  For example this agent has not told me if the asking price is good, or look here because this will give you a better return.  My biggest issue is determining is the price is right.  The cash on cash is good, but when its that good, your in the wrong neighborhood.  But I dont mind the neighborhood, prop comes with tenants.

I might just have to get my real estate license for the purpose of leveraging my own offers, and doing the best possible analysis on deals regarding market value. 

Chris message me your email. I'm not sure what your saying, but it's a philly deal.

I am not necessarily speaking about escrow tax and insurance.  I am talking about digesting the 20% down + (lender fees + closing costs).  So lets say a total of 13k to the table.  How would you put that on the balance sheets to see the money going towards that over time, managing the profit.

Here is my breakdown with the current tenant. 

Rent	$ 785.00
Mortgage	$ (165.00)
Tax	$ (100.00)
LL Insurance	$ (75.00)
Repair
Vacancy
Net Cash Flow	$ 445.00

So how do you break it down to make sense of it monthly or annually for your ledger. 

I am in the middle of buying 2 properties, and it sticks bringing around 11k to the table.  Paying 12 moths of tax, and so forth throw my numbers off, with other associated fees.

It would take forever to be in the positive.