All Forum Posts by: Paul DoCampo

Hello everyone, after about a dozen or more deal analysis I came across this deal that seems to look pretty good. I used the BP calculator as well.  It would be first deal in a real estate investment:

A duplex in SoCal, 2 hours away from where I live, and 15 mins from a military base (don't know if this is a good thing or not). This is a foreclosure on homepath.com so im only required to put 10% down for non-owner occupier. No landscape because it is out in the desert. 2 bed, 1 bath each unit. total of 1368 square for building, on 8890 square foot lot. Close to freeway and shopping.

Asking price: 65900

After repair value: approx. 90k-100k.

Interest rate: Assuming 5%

PITI: approx. 480

Rent: 790 each (total: 1580)

Utilities: (trash and water = approx. $160)

Expense cost: using 50% rule, $790

Cash Flow: 150

Down Payment: 6590

Repairs: approx. $8000 (im not too sure on this. I have only seen pictures). A rehab calculator told me 11k and that's including new roof, but that just seems way too much. Ill assume it needs new roof since its 50 years old.

closing costs: 2k ?

Out of pocket: approximate 17k

CoC return: 18.7%

Cap Rate: 10.8%

Also, CF may go down a bit if I decide to include repair cost into loan.

According to some  websites I may be able to rent for 850.

Also, The income is not including possible sources of income from say a coin operated  washing machine and dryer

I guess, another alternative to replacing it would be to just fix the bad joints and holes. But I figure that if im going to be up there anyway, I might as well replace the whole thing and do it right. If I leave some of those joints, its just a matter of time before they rip open, and I don't want to get any calls from the tenants about the house not being cool enough. it gets pretty damn hot here in southern CA.

@John Yanko

Thanks for the response.

The house was built in 79 and its the original ductwork. It is very difficult to cool the house. And I had a technician come look at my HVAC system, and pointed to the duct system as the problem.

Which makes sense, because since I have been up In the attic, I have noticed huge holes in the duct, and a couple of them were not even connected to the fitting anymore.

Thanks @Rob Beland,

Well, Since I am already up there replacing the ducts, maybe ill just take apart the insulation and take a look my self. If its just a re-sealing job, it shouldn't be too hard for me to set the plenum correctly with some screws, and re seal it with foil tape, right? I suppose the hard part may be putting the insulation back neatly.

I have been replacing the entire duct system in my primary SFR (soon to be rental). One thing that has concerned me is that the supply plenum is wobbly and not very secured. I notice that it is tilting to one side and I can actually lift that side up to an extent. Its wrapped with insulation so I cannot see whats going on. But im thinking that it is not sealed correctly as well, and I may be loosing a lot of air once I turn it on. Any thoughts? Or is this normal and I have nothing to worry about?

Note: This is my first time replacing a duct system

Thanks Garth

@Garth Gissel

I have checked rentecdirect.com however the only thing free I see is a free 30 day trial. After that the web site says they charge $15 a month for 1-10 units.

Yes I would appreciate that! I'm not too savvy with Excel (I have never really used it) so a template would be great. Thank you

I will only have one rental property coming up, and I was wondering what software or methods do you suggest for keeping track and record of payments, expenses, income, and maintenance, preferably something that is cheap or free since I only have one rental?

@Joe Fairless

Currently my plan is to have a couple SFR locally (20-30 mile radius from Chino) until I have enough capital, equity, appreciation, and/or creative financing ideas to obtain multi family units in the same area.

Im new to a lot of this, so my strategy might change. However I understand that planning is one thing and action taking is another, so I don't want to wait until I learn absolutely everything about this topic. So my first action will be to rent out my primary residence, which I have already started the ball rolling on that.