All Forum Posts by: Nic LeTexier

@Brenden Mitchum, good question. The CoC return is based on the "long term" cash flow, but I could see the value in putting a real-world CoC return column as well. Unless the property is a new construction or just went a major renovation the long term cap-ex values would not necessarily be realized.

Thanks Justin, I'll send you a direct IM, I have the spreadsheet on my personal website and it can be directly downloaded from there.

Thanks Stephanie and Jack for your feedback!

@Stephanie Chu, that is a great idea to compare the spreadsheet to the calculator BP has, great way to validate the numbers.

@Account Closed, this is more a hypothetical deal but I'm saying the cash flow is is only $73.17/mo, row 18 "Cash Flow (Long Term)", and cash on cash return of only 1.657%, not a great deal and like you said I'd never buy a house with these numbers. My big goal was to make a spreadsheet that I could quickly analyze a property with and have a fairly accurate picture on the numbers for the deal. Also the 3.5% interest rate is the loan rate from a bank (or hard money), this would be adjusted based on the deal. The cap-ex line items are listed out in the bottom left using numbers from The Book on Rental Property Investing. Thanks for providing your input on the ROI you look for in a property, I'd definitely look for a property with numbers a bit closer to what you get!

Thanks for your positive comments everyone! @Brenden Mitchum, I guess what I meant by "immediate" cap-ex was more real world cap-ex. That would take into account the life remaining in the various cap-ex items. My thoughts around rehab budget was more around getting the place ready for rent or livability.

@Keleisha Carter and @Manish V., I'll be sending out a link to the spreadsheet so you can download it. It's on my personal website.

Thanks again everyone for looking at the property analysis sheet!

I just made an Excel deal analyzer myself. I'm new to investing and trying to analyze as many places as I can. @William Johnson, would be happy to share it with you if you want to IM me for a link. @Brenden Mitchum, it would be awesome if you could test it out and let me know your opinion. I used Chapter 5 from The Book On Rental Property Investing for my numbers. Some screenshots are below.

Hey there BP Community! 

As we all know from listening to the BiggerPockets podcast, we should be analyzing 10 properties a day! For us just starting out (like me) we can easily miss something or plug in some numbers that are way off. That's why I wanted to create a template to help me quickly run the numbers. I've analyzed some properties around my area, Seattle, as well as a few cities in the mid-west, each time I'm unable to find a deal (I'm looking on the MLS but still...) that meets the 1% rule or even has a respectable $100/mo cash flow.

It would be great to have someone look at it to help answer some questions:
Is my spreadsheet off? Do the numbers look right? Is the spreadsheet helpful?

If you'd like to have a link please send me an IM, any feedback is greatly appreciated. There are screenshots below. 

*I used Chapter 5 from The Book On Rental Property Investing for my numbers, specifically page 103 for the CapEx numbers.

Thank you!

Hi Andres, I am currently closing on a house in Mill Creek and used Cor1031 Home Inspection for a couple of pre-inspections during my house hunting. Gunnar does a very thorough job and provides recommendations and practical advice for the issues he finds. He was fast and flexible getting out to my perspective houses and allowed me to make a fast bid with confidence on the place I'm now pending on. I'd highly recommend him!

@Jaysen Medhurst, you make a lot of sense with the numbers. For rentals is it a good practice (or essentially mandatory) to have a mortgage that is, at a  minimum, equal to rent minus expenses? Ex. rent = $2400/mo, expenses = $1200/mo, therefore mortgage should also equal $1200/mo (or less)?

@Jon Ostojic, I see the problem with the greater Seattle area. Relying on appreciation alone doesn't seem like the best strategy to go for... I'll have to check out the long distance real estate investing book! Time to rethink my strategy for Seattle. With housing costs in the area sky high (and rent almost equal to mortgage), I'm not seeing many areas where a buy and hold strategy could work.

@Jared Boundy, I'll start looking at running the numbers on some of the duplexes in the area. After all, I will need to be living somewhere, so might as well house hack to help the figures align!

Thank you all for the great advice!

@Jaysen Medhurst, Thank you for the advice. Your numbers are the exact reason I wasn't looking in Seattle proper, no way to get a return. I was looking in the suburbs and even looking at town homes in the greater Bothell, WA area. 

A town house in my region is about $375k for a home with only minor upgrades needed. Using a no money down VA loan the mortgage = ~$2200/mo (including tax and ins). Median rent on similar units $2400. Tight margins but maybe there is a way to get a better deal on other units.

I also really like the idea of getting a multi-family, again using the VA home loan for this. I will have to do more research on best ways to analyze these deals and get with a realtor to help show me the possibilities for these in my market.

For my circumstance, using a VA loan, I will have to live in the house for a year before moving out. Do you have any tips for investing in a high cost market like mine?

Thanks again!

Nic

Hi BiggerPockets community,

My name is Nic LeTexier. I was in the Navy for 6 years and am a native to the greater Seattle area. I currently have a telework job in tech (with a good salary and credit score) and am actively researching real estate investing.

I am new to real estate and have never been a home owner. After reading a number of BiggerPockets blog posts and tearing through the BiggerPockets podcast (seriously great material!!), I’m ready to take the next step in this endeavor and get active in the community! 

My Goal:

Financial freedom through cash flow. My freedom number is $8000/month in passive income. Ideally would like to hit this number in 10 years, 2028.

My Strategy:

While working a day job...

Using the BRRRR method for SFH (3 bedroom 2+ baths near elementary/middle schools in a good school district). My market is the greater Seattle, area focusing on the Eastside (Bothell, Redmond, Kirkland, Snohomish). I plan on using a VA loan for my first live-in investment home, staying a year and then getting another SFH to repeat. I also qualify for exemption from the VA funding fees (other strategy options here?). I am not a handyman but can use tools, so I'm looking for an initial property that will only need minor fixes/upgrades for this first crack at home ownership. Hopefully for the follow up homes I'll have a bit ability for the rehab part of BRRRR!

My thoughts are to keep the least amount of houses to hit my freedom number ($8k/month), and avoid the hassles of managing many properties at once. So, I am thinking about using the snowball method to pay off loans. Looking at current SFHs in this region, the going rent is about $2400-$3000/month.

Any thoughts on my strategy? For those in my market, is it feasible? Room for improvement? Other strategies for someone in my position?

Thank you all for your insights and advice!

Nic