All Forum Posts by: Peter Bui

Hey Joe Homs , That’s that’s a good idea, thank you for your advice, would you by any chance want to look at the property yourself and give some feedback. And if you think it is a good enough deal, maybe partner with me?

Hey guys ! Quick question: can having a trashy(hoarder) or bad neighbor make your house appraised for a lower price ? Agent just contacted me a house in that can sell for 1.1 million (according to comps) but seller has to sell because of a bad neighbor. Seller wants to sell for around 700K. Also HOA fee of 110 Hypothetically if I can cash flow $700 a month, is this property worth to pursue with a 5% ROI in Orange County? Thanks

Thanks for the feedback! @Josh Dillingham So either wait for a higher ROI or I would have to rent it out for higher/find a lower selling property. Would it be bad if I say I am ok with breaking even in cash flow, accounting for capex to break even with cash flow, as long as I have a paid off house in the end that I can sell?

@Ali Boone @Immanuel Sibero

So i guess it would help if you guys had more information. Heres the analysis! Please give some feedback on if I miscalculated or did not account for something: 

5 Bed, 2 Bath, 1550 sft

Purchase Price: 340000 (lets say it was this low, this is just for analysis practice purposes)

Closing cost: 6800

Downpayment: 68000 (20%)

Interest Rate: 4.3

Monthly Mortgage: 1346

Rent Income: 2500 (Already have renters who are ok with this price, brothers and roomates, they are actually paying more right now)

Monthly Expenses

____________________

Property Taxes: 321

Insurance: 80

Vacancy: 100

Repairs (just in case): 100

Capital Expenditures: 200

Total: 801

Cashflow per month: 2500 - (1346+801) = 353

Caprate: 5.88%

CACR/ROI: 5.66%

Do you think this is still too low? 

I am thinking if I offer lower, getting a higher Caprate and or ROI, and call it good considering it is SoCal

Thanks a lot!!

@Immanuel Sibero, ahh that makes sense. Well I am near a university, and from my experience, there is almost always a way to get people to rent out your home. at least for me i have a sibling who goes to college near by and will be renting it out for the next 4 years. And after that I will just have to figure it out. With that being said, I might would even go less than 8%. Would that be risky you think? 

Thanks for the feedback! 

Peter 

@David Friedman, @Brent Coombs 

Ahh makes sense, so for just analysis purposes, if i were to offer and obtain the house for 350,000 and double the ROI to 8% covering the interest from my loan now, in your opinion, would you invest in the property?

Thanks! 

Hey guys! Quick question. I have done the analysis and here’s a quick summary of it. Just wanted to know about the ROI. I noticed houses in riverside are pretty high right now and if I were to 20% down a 400000 property, renting our for 2500 (maybe more, already have renters who need a place for school - 5 bedroom 1550 sf) a month with vacancy, repair, capex, insurance, taxes I am cash flowing approx 270 which i am fine with but ROI is roughly 4%. I know that would be considered really low in some states but considering that it is SoCal do you think 4% is too low of an ROI to invest? Thanks in advanced!

Thanks! I’ve heard of it but haven’t looked into it. It seems like a popular one it gets mentioned all the time on the podcasts. I think I will try it out, thanks!

Just wondering what are y’all s recommendation for rental property books are? Preferably short, packed with information that I can look up if needed. Maybe strategies for a competitive market too (I live in Orange County) Thanks in advanced!

Wondering if there is a good way to looking at property history? I found a home and I can see what it was sold for and what not but is there any way I can get a contact ? Or a name? I want to reach out to that person and kind of ask them why they sold it and if there is anything I need to know. I am starting out and I’m trying to look for best way to do research on the history of a property. Thanks in advanced!