All Forum Posts by: Rauni Pacheli Rueda

I'm a investor in learning stages, so I don't have a investment property yet, and I still live in a rented apartment. I'm very responsible with my money and also trustworthy. That being said, I would like to show my side/experience, in that matter, as a tenant: When I have the money, and know that I have enough to cover my future expenses and etc, I usually pay my bills upfront. In many occasions I paid for one or two months in advance. My landlord never complained. Haha In the other hand, I wouldn't pay for a entire year but that is because that is enough money to give as a downpayment of a investment property. And we know that not everyone has this mentality. I hope my input can help to enrich this discussion.

@Ned Carey and @Gay Lloyd let me know what you guys think about it too.

@Stone Jin So in my scenario we are talking about $156 (13%) for property management and $120 (10%) for capital expenditure and vacancy, correct? Which would bring my cashflow to a little over $200. I think it's still a good number considering my learning experience, equity and appreciation, right?

Also, how do you add vacancy to your numbers?

@Stone Jin Thank you. In my area we just need to pay for water. Tenants pay for gas and electricity. How much do you usually consider for a managing company?

I'm gonna give you some numbers of what I'm expecting from my market: $80k for a 1 bedroom apartment (I'll try to get it for at least $68k) $15k downpayment $5k on renovations $300/400 mortgage $60/100 taxes $30/50 insurance $75/150 HOA $30/50 water -------------- Around $700 of total monthly costs Rent should be around $1200 Let's say I'm gonna cashflow something between $300 and $500. Let me know what you guys think, if I forgot to consider something or if my numbers are off. Thank you so much!

Awesome. Thank you for all the input. So, what I was thinking is that since I don't have enough time to take care of a property and I don't want to start with a managing company yet, a condo unit would be less stressful and they would cover most of the headache. At same time that if I get a house, I would need more money for the downpayment and more "emergency money" which could delay my plans for another year. Also, I'm trying to get started soon so in a year or so I can HELOC and finally start this snowball.

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If it really comes in 2019, be prepared to buy cheap houses. But even if it doesn't come, make sure every deal is "recession proof" (buy it with enough discount and cashflow) so when it comes you are covered.

@Ned Carey Thank you for your insight. Yes, I meant single condo unit. I apologize for my lack of vocabulary. So, Yes I understand that I'm not gonna have full control of it, but it might be the best solution to get it started. Looks like you have some experience with this. Can you give me your opinion on that? Thank you!